HOW MUCH INSURANCE COVERAGE SHOULD I CARRY?

This is one of the most customer asked questions we have in our agency. Unfortunately, there is no magic formula to determine adequacy of insurance limits, and the answer to this question comes down to price and affordability.

A glaring example of how much insurance is adequate, is documented in a lawsuit involving an auto accident.

An auto driver was involved in an accident with a motorcyclist, which resulted in the loss of a leg by the motorcyclist. The cyclist sued for ten million dollars, but at the time of the accident, the auto driver had an insurance policy with a one hundred thousand dollar limit of liability. The claim eventually settled for almost one million dollars.

This is an extreme situation, but its points out the importance of reviewing your insurance coverages on a regular basis. Adjustments in coverage should be based on your current financial status to prevent depletion of your personal or business assets.

Give us a call! We’ll be happy to discuss this matter with you, and provide premium quotations to help you make a responsible decision.