Why You Should Focus on Liability Coverage
The main purpose of car insurance is to protect your assets in case you cause a serious accident.
While it can be expensive to repair a damaged car, that's nothing when you compare it to the costs of a major lawsuit and medical expenses.
Liability coverage includes payments for medical bills, lost wages, and any legal bills resulting from a lawsuit. It also covers damages caused to other people's property including their vehicles.
The costs resulting from a serious accident can be extremely high, and this is why state requirements for liability coverage are laughably inadequate.
Most states require you to carry only $50,000 in liability coverage per accident; regardless of how many people are injured.
Experts recommend you have at least $300,000 in liability coverage, and that you get an umbrella policy on top of that if you have considerable assets.
If you want to keep your premiums down, it's much better to raise your deductible and use the extra savings to boost your liability coverage.
Having a high liability coverage is even more important when you have a teenage driver on your policy. Teenagers cause a proportionally large percentage of liability claims.
If there's one thing you learn about car insurance, it's that you should focus on boosting liability coverage as your main focus.
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