Why State Minimum Limits For Auto Insurance, Is Not A Good Idea…
June 19, 2011 Leave a comment
In my previous blog, I discussed what is required by law in Colorado, for car insurance limits. In this blog, I am going to explain why the state minimum limits are not a good idea to carry. Not only does this information pertain to Colorado consumers, it applies to all consumers in the United States.
The reason why State Minimum limits are a bad idea, is because the policy seriously lacks coverage. In Colorado those limits are 25/50/15. This means your insurance has to pay out a maximum to a potential 3rd party of, $25,000 per person bodily injury, $50,000 total accident bodily injury, and $15,000 dollar property damage.
To put this short, if you got into a bad enough at fault accident, your limits most likely won’t be enough. Chances are the other person is going to have more than 25,000 dollars in hospital bills, and if there was more than one person in the vehicle, chances are $50,000 isn’t going to be enough. On top of that, most cars cost more than $15,000 dollars. If this was you in the at fault accident, chances are after you policy limits are exhausted, the 3rd party will personally come after you.
The reason that the state laws makes the limits so low, is to make sure car insurance costs stay low enough, so people can afford it. Having something is always better than nothing, especially is this situation.
How you can protect yourself from an under insured motorists, is by making sure you have sufficient limits on you auto insurance policy under insured motorists coverage.
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