Auto insurance in our state of Colorado has many variables and if you only look at the bottom line (price), you might not have what you need.
Many insurers allow you to quote yourself and buy online, but there isn’t a human to ask you about your financial situation or advise about proper liability limits.
It’s best to consider your assets (home value, cash in the bank, retirement accounts, etc.) when selecting limits.
Say you have a bad day and rear-end someone at a stoplight. They go to the hospital and call a lawyer shortly thereafter. They want medical bills paid plus pain and suffering. How much is that going to cost? It can vary case-by-case, but a six-figure outcome isn’t out of the question.
What if you only selected a $50,000 bodily injury coverage limit on your policy? Where does the extra money come from? Your pocket! You can be asked to liquidate assets or use cash in the bank. People have had wages garnished as well.
If you are a homeowner and have savings plus retirement accounts, go big on liability. Some insurers offer between $250,000 bodily injury and $1,000,000 bodily injury. You can also add an umbrella liability, which starts at $1,000,000 in liability coverage if you surpass the auto policy limits. Umbrellas are inexpensive and add peace of mind.
Talk with your agent (or me) about your limits and what is best for you. You’d be surprised how little your rate will increase when adding hundreds of thousands in protection. Don’t save pennies and be out thousands as a result. That’s why we have insurance!