Getting into an auto accident is a terrible situation. If you do not have enough auto insurance coverage, then it can go from terrible to devastating. You probably know that by law you have to have a specific amount of auto insurance. The State of Connecticut Insurance Department explains that you must have a minimum of $25,000 per person/$50,000 per accident in bodily injury coverage and property damage liability in the amount of $25,000 per accident. However, it is important that you note this is the minimum requirement.
All recommendations are that you should have more than the minimum. If you do not have adequate coverage to pay for the expenses of an accident, then the excess will come out of your own pocket. This means you might have to sell assets or deplete your savings to pay for an accident.
Minimum coverage is not enough
According to SuperMoney, the costs of a car accident can easily exceed your coverage limits if you only carry the minimum coverage the law requires. While $50,000 may seem like a huge amount of money to cover injuries in a single accident, it really is not. If a person has to spend time in the hospital or undergo surgery, expenses can easily go over $100,000, and that is just for one person. What happens when the vehicle has multiple passengers?
It adds up fast
During an accident, medical expenses are not the only thing you need to worry about. You also have to pay for damages to the vehicle, which can also get costly. Plus, if someone in the other car loses time off work due to injuries, that may also fall on you to pay for.
It is easy to see how just getting minimum auto insurance coverage could put you at risk for a major financial blow. All it takes is one accident to put your financial future at risk, so it is essential to make sure that you have enough coverage today before an accident happens.