Protecting Your Future: Why You Should Review Your Car Insurance Liability Limits

insurance agent examining a car accident
Protecting Your Future: Why You Should Review Your Car Insurance Liability Limits

In a world filled with uncertainties, one thing is for sure – car insurance is a necessity. Whether you’re a seasoned driver or a new one, having proper car insurance coverage is essential to safeguard your financial future. While many of us focus on the cost of insurance premiums, it’s equally important to consider the rising threat of uninsured motorists on the road.

The cost of auto insurance premiums has been on the rise for years. As insurance companies grapple with increasing claims and expenses, policyholders often bear the brunt of these rising costs. Consequently, many drivers are tempted to reduce their coverage to the minimum required liability limits or worst-case scenario opt for no coverage at all to save on premiums.

One of the most alarming consequences of rising insurance costs is the surge in the number of uninsured motorists on the road. These are individuals who operate vehicles without any insurance coverage whatsoever. J.D Power found that certain regions had higher rates of uninsured drivers, with 12 states experiencing a 30% or more increase in the share of insured drivers compared with the second half of 2022.

The top five states with the most uninsured include South Dakota, New Hampshire, West Virginia, Oregon, and Indiana.  This number has likely increased due to the financial strain caused by increased claims and the persistent rise in insurance premiums. More increases could be on the way because, so far, those higher premiums haven’t been enough to cover claims costs.

In 2022, the auto industry spent 12% more on claims and other costs than they collected in premiums, the second straight year such a deficit occurred, the J.D. Power report said. 

Drivers struggling with higher premiums should contact their insurer to review their current coverage and ask about all discounts that may be available.

In today’s world, where uninsured motorists are on the rise due to the escalating cost of insurance premiums, reviewing your car insurance liability limits is a prudent financial move. Adequate liability coverage can protect your assets and provide you with peace of mind on the road. Don’t wait until it’s too late; take the time to assess your coverage needs and ensure you’re adequately protected in case of an accident with an uninsured motorist. Your financial future may depend on it.

Contact Staples & Associates to make sure you have the right coverage today!

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