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What Insurance Limits Should You Maintain?

insurance limits

When it comes to car insurance, many people make decisions based solely on price, opting for the minimum coverage required by state law. While this might save some money upfront, it can leave you vulnerable in an accident, especially if the other driver is uninsured or underinsured. In this blog, we’ll discuss why it’s essential to maintain higher insurance limits, particularly for uninsured and underinsured motorist coverage, and why it’s an affordable and smart choice for financial protection. If you have any questions, please contact us at KAASS LAW for personalized advice.

The Importance of Adequate Insurance Coverage

Auto insurance is designed to protect you financially in case of an accident. However, minimum coverage requirements vary by state and are often insufficient to cover the full extent of damages in serious accidents. Higher limits can provide peace of mind, ensuring that you’re not left footing the bill for expensive medical care, property damage, or legal fees.

One of the most overlooked aspects of car insurance is the need for adequate uninsured motorist coverage (UM) and underinsured motorist coverage (UIM). These policies cover you when the at-fault driver lacks insurance or enough coverage to pay for the damages caused.

What Are Uninsured and Underinsured Motorist Coverages?

Uninsured motorist (UM) coverage kicks in if you’re involved in an accident with someone who doesn’t have any car insurance at all. According to the Insurance Information Institute, about 12.6% of drivers in the U.S. are uninsured. Without UM coverage, you could be left with the financial burden of your injuries and car repairs.

Underinsured motorist (UIM) coverage applies when the at-fault driver has insurance but their coverage limits are too low to cover the total costs of the accident. In this case, UIM bridges the gap between the other driver’s limits and your expenses.

At KAASS LAW, we’ve seen firsthand the devastating effects of accidents where individuals lacked sufficient coverage. Don’t wait until it’s too late—let us help you evaluate your insurance needs to ensure you’re adequately protected.

Why You Should Maintain High Insurance Limits

1. Protection Against High Medical Costs

Medical costs are skyrocketing; even a minor accident can cost thousands of dollars in hospital bills. If you’re involved in a serious accident, especially with an uninsured driver, the medical expenses alone could exceed the state-mandated minimum coverage. Higher limits on UM and UIM coverage will ensure you aren’t left with medical debt in such cases.

For instance, if an uninsured driver hits you and suffers a broken leg, the costs for surgery, rehabilitation, and time off work could easily exceed $50,000. Minimum coverage might leave you paying a significant portion out of pocket. But with higher UM/UIM limits, these expenses would be covered, protecting your finances.

2. Legal Protection

In addition to medical costs, higher insurance limits can also cover legal expenses. If you’re involved in an accident and the other party decides to sue, your legal defense costs could escalate quickly. You might pay for an attorney out of your pocket without adequate coverage. Having higher insurance limits ensures that your insurance company covers your legal fees and any potential settlement amounts.

KAASS LAW has a team of experienced attorneys who can help guide you through the legal intricacies of accident-related claims. We strongly recommend that you protect yourself by maintaining high coverage limits.

3. Peace of Mind for Property Damage

It’s not just bodily injury you must worry about; property damage can also be costly. Car repairs can be expensive, especially for newer or luxury vehicles. If the other driver is uninsured or underinsured, you could be left paying for these repairs yourself unless you have sufficient UM/UIM coverage. Higher limits ensure that your car can be repaired or replaced without draining your savings.

Check out our page on car accidents to understand how we can help you recover damages after an accident.

How Affordable Are High Insurance Limits?

A common misconception is that higher insurance limits are expensive. Increasing your limits—especially for UM and UIM coverage—is often surprisingly affordable. In many cases, doubling or tripling your coverage may only add a few dollars to your monthly premium. This small investment can provide enormous financial protection.

For example, raising your uninsured motorist coverage from $30,000 to $100,000 may only increase your monthly premium by a small amount. Yet, it could save you tens of thousands of dollars in the event of an accident.

At KAASS LAW, we advise our clients to carefully consider the true cost of insufficient coverage. A minor increase in your premium now can save you from significant financial losses down the road.

Avoiding Financial Hardship After an Accident

Accidents are stressful enough without the added burden of financial uncertainty. With higher insurance limits, you can avoid the devastating economic consequences that often follow serious accidents. If the other driver is uninsured, you don’t want to be left in a position where you cannot pay your medical bills, repair your car, or cover your lost wages.

Many drivers think, “It won’t happen to me,” but accidents involving uninsured or underinsured drivers are all too common. Protect yourself now by making sure your coverage is sufficient.

How KAASS LAW Can Help

If you’re unsure about what kind of insurance limits you should maintain, KAASS LAW is here to help. We can assist you in evaluating your current coverage and determining whether your limits are sufficient to protect you in the event of an accident. We have extensive experience helping clients navigate the complexities of car accident claims and understand the importance of proper coverage.

Visit our car accidents and personal injury pages for more information on how we can help you if you’ve been in an accident.

Maintaining high insurance limits, especially for uninsured and underinsured motorist coverage, is a smart financial move that can protect you from costly accidents. With the rising costs of medical care and vehicle repairs, the slight increase in your insurance premium is well worth the added peace of mind and protection. Don’t wait until after an accident to realize you’re underinsured—take action now.

If you have any questions or need assistance reviewing your coverage, contact KAASS LAW today. We’re here to ensure you have the proper protection in place. Call us to discuss your options and make sure you’re fully covered.

 

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