29 Oct How much insurance should I have?

It is a question we are asked routinely. Unfortunately, for many clients they ask us when it is too late – after the injury.

So we are giving you the skinny on it now. Please take our advice on it. Not only is it free, it may be the best thing you do this year.

Kentucky mandates a minimum liability policy of only $25,000. But this policy is for chumps. Why? Because it provides very little coverage. Nor has it been raised since it was signed by the Governor decades ago (and when you could buy a nice new car for $4,200). And even then the minimum coverage wasn’t enough.

So what amount should you buy? Of course, this is a personal decision and depends on a wide variety of factors. However, the baseline considerations apply to all drivers. Specifically, if you are involved in a typical collision, you do not want to have to choose between losing everything and bankruptcy court. Therefore, we recommend that every client carry a $100,000/$300,000 policy for bodily injury.

When you consider the price of new vehicles today, you will want to purchase at least $100,000 in property damage coverage as well. Also keep in mind that many collisions involve more than one vehicle – and thus, the property damage coverage should be enough to cover three or more “totaled” cars.

Additionally, you must purchase supplemental coverage. This includes the coverage that will protect you and your family in the event of an accident. Following this recommendation will cost you only a few dollars each month.

Once you decide to make changes to your insurance policy, make sure you talk to your agent about Uninsured Motorist Coverage (UM), Underinsured Motorist Coverage (UIM), and Personal Injury Protection (PIP) limits. There are thousands of drivers on the streets with no insurance. Additionally, the majority of people out there have minimum coverage and if you are ever hurt in an accident you will be grateful to have UM, UIM, and PIP.