For most people, buying auto insurance is like filling the gas tank. They do it once and then forget about it until it’s needed again.
Unfortunately, many people don’t have as much protection as they believe.
There are a number of common mistakes drivers make when purchasing auto liability insurance.
That’s why drivers should work with an agent to pick the right protection for their specific needs.
Following are some pitfalls to avoid when purchasing auto liability insurance:
Purchase the Legal Limit: One of the most common mistakes is purchasing the minimum amount of liability coverage required by your state. While it might seem like a great way to save money in the short term, it’s often a big mistake. Remember, liability protection provides payment in the event that you are at fault in an accident. Property damage, medical bills, and even pain or suffering may exceed the limits of liability, leaving you personally responsible for the remainder of the bill.
Failure to Name Other Drivers: In order to hold costs down, some drivers limit coverage to their personal use of the vehicle. If you ever loan your vehicle to friends or family, even for a short period of time, be sure to name other drivers on the policy.
Consider Your Personal Protection Needs: Don’t assume other drivers are as responsible in their decisions to purchase the right levels of insurance. Instead, make sure you have adequate coverage to protect your own interests in an accident, including medical coverage.