| Recently, there
has been a lot of talk about "auto insurance"
as if it were, well, a commodity. The fact is,
you can buy a lot of auto insurance, or a little.
Most states, more than 40, require you to have
auto insurance. But
they don't require you to have much. In states
that have so-called mandatory auto insurance
laws, all you are required to buy is a little
bit of liability coverage. This is so you can
pay for some of the damage your car does to
other cars and other people not in your car.
How much are you required
to buy? In most states with mandatory auto insurance
laws, the minimum needed is liability that provides
1) $15,000 for any person involved in an accident
with you, 2) a maximum of $30,000 for all persons
in the accident, and 3) $5,000 for damage to
the other vehicle(s) involved. That's not much.
In fact, it's next to nothing. Worse yet, the
mandatory limits in Ohio are even lower; $12,500/$25,000/$7,500
respectively.
Tip.
The minimum amount of insurance required by
most states is not much. Seriously consider
getting more protection in order to protect
your financial health.
Note.
Notice that mandatory auto insurance laws do
not require you to buy coverage for your own
car. Or coverage for your injuries. Or coverage
if you are hit by someone who doesn't have insurance.
If you buy just the
minimum coverage required by law, you are leaving
your assets at considerable risk. Your car,
obviously. And your home, if you are at fault
in an accident that causes serious injuries
to the other parties.
And how far do
you think $7,500 will go if you total somebody's
Lexus? Not far enough!
|
