The Disadvantages of Being an Underinsured Motorist 

Auto insurance is required by law in most states, but having the minimum coverage may not fully prepare you for what happens after a serious accident. Being underinsured can leave you responsible for significant costs, especially if you’re found at fault or hit by another driver who also lacks sufficient coverage.

How Does Underinsurance Affect Me as a Motorist?

When your insurance limits don’t match the financial realities of today’s medical bills, vehicle repairs and legal claims, you could face personal expenses that your policy won’t cover. This can strain your finances long after the accident is over. Underinsurance exposes you to out-of-pocket costs and creates added stress during a difficult time.

Choosing liability limits that exceed the state’s minimum requirements may trigger higher premiums, but it can help avoid serious financial setbacks if you cause an accident involving third-party injuries or property damage.

How Much Auto Insurance Do I Need?

Determining the appropriate amount of auto insurance depends on many factors, including your assets, income and driving habits. As a starting point, your agent may recommend liability limits that match your net worth.

It’s crucial to review your policy once a year or after significant life changes. A growing family, a new job with a longer commute or buying a new car can all affect your insurance needs.

An insurance agent from INSANDTAGS.COM can help determine appropriate liability limits for your situation. Contact us today to learn more.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.