Now, more than ever, it’s important to keep costs down. Here at Regency Insurance, we understand that every dollar counts. However, I’m noticing a disturbing trend that I want to share with you.
I have been an insurance agent since 1991. Back then, the average person quoted had auto liability limits of $100,000 per person/ $300,000 per accident.
Guess what? The average person still has these limits!
What does this coverage pay for? It provides the money used to cover the “bodily injury” to another party which is caused by you or a covered driver under your auto policy. Bodily injury can included medical costs, lost wages and pain & suffering.
As we all know, the price of everything keeps going up. Medical Costs are no exception. According to the U.S. Department of Labor, general medical and surgical hospital costs have risen over 77% since 1992 (source: http://data.bls.gov/).
This means that the limits of liability you have today will pay for only 56% of the medical costs it would have bought in 1992.
The limits of liability you chose when buying an auto policy (or any policy for that matter) is meant to be a financial buffer between the injured party and your personal assets (which can include future wages). The more liability insurance you purchase, the less likely you are at risk of losing your personal assets in a judgment.
Bottom line: It may be time to reassess the amount of liability insurance you should have as medical costs increase, in order to protect you and your family from financial loss. Especially, if you have limits of $100,000 per person/$300,000 per accident, or lower.
So How Much Will It Cost?
Every insurance company is different, but typically, increasing auto limits of liability (as well as uninsured motorists) from $100,000 per person/$300,000 per accident, to $250,000 per person/$500,000 per accident, will cost between $75 to $125 per year based on two cars and two drivers. That’s around $10 per month to better protect you, your family, and your assets.
Please give us a call toll free at (800) 350-6876 or email us if you are interested in getting more information on increasing your protection. We’re more than happy to provide you the “what if” quotes you need to make an informed decision, and get the “peace of mind” you deserve.
~Regis Coustillac, CIC