Auto liability insurance – skimping on coverage can cost you, big time

Ohio motorists are required to maintain, at a minimum, liability insurance when driving.

Liability insurance pays for damage or bodily injury that you cause to another vehicle and its passengers. It also covers legal fees if you are sued as the result of an accident.

But, if you’re going to choose the route of maintaining only liability insurance (as opposed to comprehensive insurance), don’t skimp on the coverage.

Here are 6 things to consider when deciding if you should “go cheap” on your auto insurance coverage:

1. "Going cheap" can destroy your financial future.

The simple fact is: if you don’t have enough coverage and you are responsible for the bodily harm of another person, you will be legally bound to pay out-of-pocket. This means that the equity in your home, your savings and investments, and even your retirement assets may be at risk.

2. It's all about risk transfer.

Having adequate coverage does just that. With enough coverage, a pending personal injury lawsuit becomes the insurance company’s financial problem, not yours.

3. Adequate coverage gives you peace of mind.

It’s a bad day when you see another person taken away in an ambulance because of an accident you may have caused. It’s even worse when you’re not sure if you have enough coverage. That bad day can turn into weeks and months of worrying. Having the right coverage will help alleviate that terrible burden.

4. Adequate coverage costs a lot less than you think.

In many cases, you can double and triple your coverage for just a few extra dollars per month.

5. When in doubt, add an umbrella.

An umbrella policy can add an extra layer of liability protection to your auto policy. Typically, umbrella policies are purchased in $1,000,000 increments. These are excess policies and are not triggered until your basic auto coverages are exhausted. Because of this reality, these policies are very reasonably priced.

6. Talk to an agent.

How much coverage do you need? This is where 15 minutes just doesn’t cut it. Take the time to sit down with an insurance professional, discuss your needs, and come up with a game plan that will fit your budget (while at the same time helping you sleep at night).

About the Author:

Robert Heed is a licensed insurance agent located in Medina, Ohio. Robert has been in the insurance business since 1994. He shares his practice, Agency One Insurance, with his wife and fellow insurance agent, Christine Heed. Robert focuses on Personal lines, while Christine’s focus is with Commercial Insurance. They have two children, Patrick and Grace, and have been married since 1995.