Not having the right amount of liability insurance coverage could be a “million dollar mistake.” There’s simply no way to sugar coat it. If you’ll allow us to start by painting the harsh reality of this picture we promise to close things out with encouraging news about the next steps you can take!
Insurance is About More Than Checking Boxes
So often, auto insurance is perceived as nothing more than a requirement of owning a vehicle. It is a legal requirement and therefore, you go through the motions and get what’s required of you. Some may even call car insurance a “necessary evil” (which breaks our hearts just a little!). However, we encourage you to reframe how you conceptualize your coverage.
Insurance is so much more than a box that you need to check. In particular, when thinking about your auto insurance coverage you should really spend time and attention on how much liability coverage you have and need.
Inadequate Coverage Creates Major Risk
Here’s the cold hard truth: If you cause an accident in a car or at your home and there are injuries requiring medical treatment you could be looking at millions of dollars in expenses. If your insurance policy isn’t enough to cover all of the damages from the accident you are exposing your personal assets at that point. When your coverage fails to fully pay the other person’s insurance policy will kick in and help cover the costs. The issue comes with what will happen next – the other person’s insurance will then come after you to attempt to recoup their costs from your assets or garnishment of your wages. This is the big problem and the big risk you should work to protect yourself against, through adequate liability coverage.
Early in someone’s life and career they often have a lower income, very little property and worth that would attract a lawsuit. However, as someone’s career takes off, property is accumulated, income goes up and net worth grows, a person becomes more attractive to recover losses through a lawsuit.
Without proper reviews of your insurance coverage you may be inadvertently setting yourself up for major and unacceptable risk. But don’t worry, this is not a “gloom and doom” article and we aren’t here to tell you a bunch of bad news. Rather, we are hoping to educate you, inform you, and explain what you can do to ensure you have optimal coverage.
The Solution is Simple
First, make sure you review your policy annually. This means taking a look at your policy and considering if you have experienced any major financial or property changes. Then, have a sit down discussion with your insurance agent every 2 to 3 years. The goal of that meeting should be to make sure that your policy is accurate for where you are in life as it relates to your growth of income and assets.
This is one of many reasons that our team emphasizes having relationships with our clients and it is also why our tagline is “the protection you need from people you know.” Listening well, understanding your unique risks, and comprehensively exploring your financial situation are all necessary aspects of your relationship with your agent.
We are always here for YOU!
Nobody wants to make a million dollar mistake. Connect with our team of experts to learn more about how to manage your risks and protect yourself from liability with optimal insurance coverage.