Many drivers do not give a second thought to picking low coverage limits when they purchase Bucks County PA auto insurance. The risk of an accident can seem abstract, while the price of minimum coverage can seem high enough. Still, poorly chosen coverage limits can lead to huge financial losses. To fully protect themselves, drivers should realistically evaluate their coverage needs under the following circumstances.
Situations of Liability
Minimum liability coverage amounts are inadequate when severe injuries occur. If you are ever at fault for another driver’s injuries, you may be at risk for a personal injury lawsuit and loss of personal assets. In Pennsylvania, a motorist who contributed to an accident but was less than 50 percent at fault can seek compensation from the other motorist. If you own a house or other high-worth assets, make sure you have adequate liability limits.
Cases of Personal Injury
It is critical to realistically evaluate your financial state and health insurance when determining a medical benefits coverage limit. Many drivers think they won’t ever be involved in an accident and set their limits based on that belief. It’s important to remember that other drivers can cause accidents entirely on their own. You should also remember that, after an accident, you might have a limited ability to work, which will reduce your ability to rebuild your savings or cover unexpected costs.
Enjoying Long-Term Savings
For many drivers, committing to paying a higher Bucks County PA auto insurance premium can be difficult at first. However, drivers should look at the price difference as an investment that will offer an extraordinarily high rate of return in the event of an accident.