How much insurance should you carry?
In previous articles, we’ve talked about the minimum amount of insurance coverage required by the state of Pennsylvania for motorists. We’ve also explored the requirements for homeowner’s and renter’s insurance, making it clear that there is no state mandate, but that many mortgage companies and even some landlords require homeowners and renters to carry a policy.
We’ve answered the question of how much insurance you have to carry, but sometimes, that answer isn’t the same as how much insurance you should carry. There are circumstances where the bare minimum just isn’t enough, and in this article we’ll discuss how you can know when boosting your insurance coverage might be a good idea.
How to determine when you need more insurance coverage
Knowing how much insurance you should carry is an answer best determined in consultation with your trusted insurance agent at Superior Insurance and Auto Tags, but here are a few questions you can ask yourself to start getting an idea about whether you might need more than the minimum amount of coverage in your insurance policies:
- What kind of bills could you incur in the event of a catastrophe or accident?
The first thing you can do to try to determine whether the bare minimum amount of coverage is adequate for you is to have an estimation of the value of the assets you are covering. What is your home worth? If you rent, what are your personal possessions worth? What is the value of your automobile, and how expensive is it to repair? While there are some costs you just can’t estimate, like how much your medical bills might be if you are involved in an accident, there are other values you can know. Use these figures to see whether a lower level of coverage sounds like it would be enough to provide for your needs if you have to file a claim or if you are sued for an injury resulting from an accident you caused or one that occurred on your property. - How much peace of mind do you want?
When you opt for an insurance policy based on the bare minimum requirements, the trade off is that you are getting more limited coverage. Each motorist, homeowner, and renter has to decide how much of a trade off they are willing to make. With increased coverage comes increased peace of mind, and the knowledge that you are in a better position to handle today’s higher medical, car repair, and other bills should you find yourself in need of filing a claim or relying on your insurance to help if you are found liable for an accident or injury. Your insurance agent can help you find that balance of affordability and the peace of mind that comes from having more than the most basic level of coverage. - What kinds of incidents do you want coverage for?
Minimum coverage provides protection in the minimal number of circumstances. But suppose you want to be covered in the event that your basement floods after a hurricane? Or maybe you want the peace of mind that you’ll have help if you are involved in an automobile accident where the other driver doesn’t have insurance at all. If you want your insurance to cover you in more circumstances than the minimum requirements provide for, it’s time to talk to your insurance agent about boosting your coverage.
Wondering how much insurance is right for you, and whether it’s time to boost your coverage? Give the expert insurance agents at Superior Insurance and Auto Tags today to talk about your insurance needs!