As an independent insurance agency the common statement we hear from individuals, especially with the purchase of a first car, is ”I don’t have much in the way of assets so all I really need is the minimum coverage allowed by the State of Connecticut”. WRONG!
The State of Connecticut only requires and individual to carry bodily injury coverage in the amount of $20,000 per person/$40,000 per accident, property damage at $10,000 and uninsured/underinsured motorist coverage at $20,000 per person/$40,000 per accident. In layman’s terms this means if you are involved in an accident which is your fault and you injure the other driver the most the insurance will pay that individual is $20,000. OR if you damage the other vehicle or any other property the maximum payout is $10,000. Looking at this with today’s medical costs or the cost of a new car these limits don’t even come close to what is necessary.
What will happen when your coverage is not enough to cover damages? Now the original statement about assets comes into play. “What can they take? l have nothing.” The reality a lot can be taken, like garnishment of your wages far into the future. It is true however that before this can happen there will be a drawn out legal battle and the insurance company will defend you and try to get the payout to be within the limits of your coverage but this will not always be the end result. In general the additional cost of higher liability limits far outweigh the risk of not having enough coverageand being faced with a potential law suit and wage garnishment.
Your independent agent has numerous insurance markets to choose from to get you the best coverage and at the most competitive price. It is the role of the independent agent to review your needs and your ability to pay for the coverage and balance it with the risks you face as a driver. An independent agent is not just there to sell you insurance but to guide you through the process and explain the benefits and risks along the way.