As a full service, independent insurance agency in Connecticut we come across many types of requests for auto insurance. The Keating Agency is always looking to create a lifelong relationship with our clients (see this blog) and we always advise our clients based on their current needs and future needs based on where they are in the so-called “life cycle”.
Just like you, we have to acquire and pay for auto insurance and we understand that in today’s economic environment, budgets are tight and people like you want to try and save money. But, at what cost? Is it wise to sacrifice overall value and protections for $100 today? I can almost see some folks nodding their heads yes, but let’s do some critical thinking first:
In Connecticut, the state minimum auto insurance split limits are 20/40/10 (know there is also Combined Single Limits available as well). Do you think $10,000 would go very far if your car is badly damaged by such a driver?
Same driver causes you to have $120k in medical bills, but their policy only covers you up to $20k. You now have to get a lawyer to fight for the remaining $100k and even if you win, you will only receive on average around $66k since your lawyer will be entitled to 33%! This is where Uninsured Motorist coverage comes in, but as you can see a minimal amount can leave you in a bad financial predicament.
Flip it around, you’re the one with low coverage limits and you are now being sued by the injured party for their medical bills above your low limit. Can you self-fund such a situation? You will not have an Umbrella Policy to fall back on since higher limits are required by the insurance carrier, leaving all you have acquired and are planning for at great risk.
This article may be using North Carolina as an example, but the realities of the above situations are spelled out all too clearly. This quote from Dre Fleury, Attorney at Law, really is an eye-opener: “It’s not just uninsured or underinsured drivers who pose a risk,” said Fleury. “If you’re at fault in an accident, not having enough liability coverage could wipe you out financially, and the person you injure can even come after your home, assets and more.”
So, what do you think? I can definitely say that no two insurance options are exactly the same because we are all in different life situations creating differences to protect, but we do have the exact same goal: To protect you from financial ruin should you have an accident. As you can see from the examples, it does not take much to put your finances on the hook for $50k or more.
The good news is we work with people like you all the time and being independent means we can choose from the best products and coverage available to give you not only the best protection, but the best value for that protection. Doing an Annual Review can help you understand your needs as can contacting us so we can get you protected.
Our wish is for none of our clients to experience such events, but we all know that is not how life operates and we hope this blog helps you understand why planning with us today is a great investment for your future.