HOW MUCH AUTO INSURANCE DO YOU REALLY NEED?
June 15, 2012by Lyris Medrano
Paying for car insurance is probably not on anyone’s list of favorite things to do, but since June 1, 2010, auto insurance has been mandatory in Wisconsin. So, how much coverage are you required to carry? And, more importantly, how much coverage should you carry?
In Wisconsin you are required to carry the following MINIMUM insurance coverages:
• $25,000/$50,000 for bodily injury coverage;
• $10,000 for property damage; and
• $25,000/$50,000 for uninsured motorist coverage.
NOTE: The abbreviations of $25,000/$50,000 mean you have $25,000 of coverage for injury or death of one person and $50,000 of coverage for injury or death of two or more people.
Determining how much coverage you actually should carry is something you will want to discuss with an experienced insurance agent. Factors like the age and value of your vehicle, how much you drive, how much of a deductible you can afford, what assets you have, etc. should be taken into consideration. But also, you want to purchase enough coverage to protect you and your assets in case you are injured or injure someone else. Another way to look at it is that you will need to evaluate how much coverage is enough to protect you in case you are sued by someone you seriously injure in an accident. As a general rule, we recommend the following minimum coverages:
• $100,000/300,000 Bodily Injury
• $15,000 Property Damage
• $100,000/300,000 Uninsured Motorist Coverage
• $10,000 Medical Payments Coverage
• $100,000/$300,000 Underinsured Motorist Coverage
Depending on your situation, you may want more coverage, but unless you have a large umbrella policy, less coverage may leave you exposed. For example, if you seriously injure a person in a car accident and they accumulate tens or hundreds of thousands of dollars in medical bills as a result, you may be personally liable if your auto insurance policy limits are too low to cover the damages. Your exposure to liability could include the remainder of the medical bills, past and future wage loss of the injured person, pain and suffering, and other claimed damages.
Uninsured and underinsured motorist coverage protects you in the event you are injured by a driver who has insufficient insurance coverage to cover your damages. Can you afford to be without it if you are injured, can’t work, and medical bills begin to pile up?
If you or someone you know has been injured in an accident, we may be able to help. Call Hawks Quindel for a free, no obligation consultation at (414) 271-8650.
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