Car insurance is a superb investment that protects your car, yourself, and your passengers. While car insurance can be a life-saver, are you carrying enough coverage? We often see clients frustrated after an accident when they discover their policy only covers a portion of their financial loss. You could be renewing your premiums every year, but it counts for nothing if it doesn’t cushion you when you need it most.
Do you have car insurance in Columbia, SC? Do you have adequate coverage? If you are not sure, read the guide below from New American Insurance.
Meet the state requirements first
Almost all states have set insurance minimums for drivers to meet when buying car insurance. For instance, South Carolina requires all drivers to have the below minimums:
- $25,000 bodily injury liability and twice the amount for multiple persons
- A minimum of $25,000 for property damage liability
Meeting the above requirements is okay, but the state minimums are far below what you need to protect yourself and your assets.
How much liability coverage do you need?
Here, we usually advise motorists to increase liability coverage as high as they can afford. If you are at fault for an accident and accused of inflicting bodily injury or property damage to others, your assets will be on the line if you have insufficient liability coverage.
We usually advise our motorists to carry liability coverage of at least 100/300/100. However, if your assets exceed this amount, we advise you to consider umbrella insurance or excess liability coverage.
How much collision or comprehensive coverage is enough?
Always assume the worst-case scenario when purchasing physical damage coverage. As a rule of thumb, consider coverage that should replace your vehicle when it’s totaled or stolen.
If you are still unsure about the amount of car insurance you should carry, please get in touch with New American Insurance in Columbia, SC for customized advice.