Do I need More Than the Minimum Required Auto Insurance?

Most states require drivers to carry liability insurance with minimum limits to cover injuries and damages caused in a car accident. Often, states require you to buy at least $25,000, or in some cases $50,000, in coverage in order to have the privilege of operating a vehicle.

Insurance costs money, it’s something many of us don’t feel a tangible benefit from, so why would you buy more than your State requires you to buy? After all, you are trying to abide by the law, but as cheaply as possible, right?  As a car accident lawyer Memphis TN trusts, we highly recommend that you carry more than the required minimum insurance limits. Here are some reasons why:

Medical expenses are on the rise.  If you are in a car accident and it’s your fault, you may become responsible for paying for the injured person’s medical expenses. Have you seen a medical bill lately? We have seen many, and in most cases, when there is a significant injury, such as a broken bone, a minimum limits policy is not enough to cover the claim of the injured person. New findings from the Insurance Research Council’s (IRC) Auto Injury Insurance Claims Study show that medical expenses reported by car crash victims continue to increase, even though the severity of the injuries seems to be going down.  Here are some other sobering statistics about the costs of a car crash:

  • Average cost for each death in a crash: $1,130,000
  • Average cost for each non-deadly disabling injury: $61,600
  • Average cost for each property damage crash (includes non-disabling injuries): $7,500
  • Average economic cost for incapacitating injury crash: $65,000
  • Average economic cost for non-incapacitating evident injury crash: $21,000
  • Average economic cost for possible injury crash: $11,900

If you do not have enough auto insurance, your personal assets will be on the line. If you are in a car wreck and it is your fault, you may become liable for the injured person’s damages. Not just medical bills, but other types of damages as well such as lost wages and pain and suffering. If your insurance policy limits are not enough to settle the injured person’s claims, he or she could possibly obtain a judgment in court and then collect against you personally, such as by garnishing your wages, levying upon your bank accounts, or collecting against other personal assets you may own such as a home, automobile, or boat. So, in this way, having the proper amount of insurance in place is a form of asset protection.

If you can help it, don’t skimp when it comes to insurance. Talk with your insurance agent about the different types of coverage available and purchase as much coverage as your budget will allow.

If you need help with your auto accident case, or another kind of personal injury case, contact the experienced lawyer today.

Wiseman BrayThanks to our friends and contributors at Wiseman Bray PLLC  who have significant experience fighting for auto accident victims in Tennessee.