In light of the current economy, many customers are now looking to try to save every penny possible.  Here at Kelly Insurance, we understand and respect that entirely.  But when sacrificing coverage to save a few dollars monthly, please consider your decisions carefully and listen closely to the advice of your professional agent...

As you are probably aware, Ohio requires that you carry a minimum limit of auto insurance to stay legal to drive.  They require it for your own protection -- without insurance, you would have to pay for damages in an accident out of your pocket.  In fact (and this is an incredibly interesting statistic), the total cost of accidents averaged out to $1,051 per person in 2009!

Now, that's an average per driver.  The average accident costs much more than that.  In fact, many accidents cost upwards of $30,000 -- sometimes hundreds of thousands!  Can you afford to pay the difference out of your pocket?  Wouldn't it be easier to spend a few dollars monthly for a much higher limit?

Read more for compelling reasons to keep your limits as far from 'minimum' as possible...

Uninsured Motorist Protection is becoming increasingly important.  When times get tough, many drivers choose to drive without liability protection.  That makes them "uninsured motorists."  If one of them hits you, who's going to pay the bill?  Are they going to pay for your medical bills out of their pocket?  Probably not -- they didn't even have the money to buy insurance.  How are they going to pay for your medical bills? 

Auto insurance has an optional coverage called "uninsured / underinsured motorist bodily injury (aka UM / UIM)."  This coverage will pay your medical bills up to the limit purchased if someone hits you without insurance (or without as much as you prefer).  Now here's where it gets tricky.  You can only buy as much uninsured motorist coverage as you purchase for liability.  So if you buy minimum limits, the highest limit you can get per person for UM is $12,500 per person!  Purchasing the higher limit on liability allows you to buy a much higher limit on uninsured motorist.

Still not convinced?  Liability Coverage is a fascinating thing.  The company that you buy it from promises to pay for damage that you cause up to the limit that you select.  The company also promises to defend you in court until the limit is exhausted!  So let's say you have a minor fender bender and three people climb out of the other car hollering 'whiplash'.  Your insurance company will defend you in court.  But what if all three are demanding for $100,000 and you only have $12,500 per person / $25,000 max per accident of coverage?  The company will still defend you.  But as soon as they have paid $25,000 for the first two people, you're on your own to defend yourself for the third claimant.  And attorney are still pretty expensive right now... 

And not only is it pricey to defend yourself, if you land a judgement against you for that third person (or for more than $12,500 per person for the first two), better ask for extra hours at work because you're going to have to pay the difference.  Again, wouldn't it be easier to pay a couple of bucks for the much higher limits?  The alternative might be a second mortgage on your house and you don't get to keep the money...

So before you consider going "cheap" on your car insurance, remember that saving a small amount now will often lead to a huge financial burden later.  And anyone that tells you state minimum is good enough for anyone still needs to assess whether they are doing the right thing for you as their customer. 

Need to discuss your options, please contact your Kelly Insurance Agent today.