Deciding to increase your bodily injury coverage is an important consideration that hinges on several factors. Bodily injury liability insurance is designed to cover the costs associated with injuries that you may cause to other people in an accident. The coverage includes medical expenses, lost wages, and sometimes legal fees if you are sued. Here are some factors to consider:
Asset Protection: If you have substantial assets (such as a home, savings, or other investments), it is wise to carry enough bodily injury coverage to protect these assets in case of a lawsuit. Inadequate coverage could mean that your personal assets are at risk if the costs of an accident exceed your coverage limits.
State Requirements: Each state has minimum insurance requirements. However, these minimums are often not sufficient to cover the potential costs of a serious accident. Increasing your coverage beyond the state minimum can provide better financial protection.
Potential Risks: Consider your driving habits, including how often you drive, the distances, and the areas you frequent. Higher exposure to traffic and use could increase your risk of being involved in an accident, thus necessitating higher coverage.
Financial Capacity: While increasing your coverage will raise your premium, it is often a small price to pay for the added security it provides. Consider your budget and determine if the increased coverage is affordable over the long term.
Peace of Mind: Having higher coverage limits can offer peace of mind, knowing you are financially protected in various scenarios. This assurance is invaluable, especially if you are risk-averse or have dependents relying on you.
In conclusion, while increasing your bodily injury coverage is not an absolute necessity, the benefits of enhanced protection and peace of mind often outweigh the additional premium costs. Evaluate your personal situation, including your financial status and risk factors, to make an informed decision.
