Hal Tiffany Agency Inc.
How Much Coverage Do I Need
How Much Coverage Do I Need
Auto Liability Insurance
In Minnesota, the minimum requirements are $30,000 of bodily injury liability for one person, $60,000 bodily injury liability for all people in an accident and $10,000 property damage liability. Another type of coverage, personal injury protection (PIP), pays for your own medical expenses, any lost wages and whatever other costs may arise when you're injured in an accident. It usually pays about 80 percent of your losses, and it also pays a death benefit. PIP is required in Minnesota.
Even though Minnesota has minimum requirements for bodily injury liability, it is probably in your best interest to purchase higher limits. If someone else is injured and you're at fault, the minimum liability coverage may not cover the other motorist's medical expenses, in which case he or she will most likely come after your assets. Insurance experts generally recommend that you purchase 100/300 limits of bodily injury liability (meaning $100,000 for one person in an accident and $300,000 for all people injured in one accident).
Comp/Collision Coverage
Collision insurance covers damage to the policyholder's car resulting from running into anything, be it another car, a fire hydrant or a light post. Comprehensive coverage takes care of your car in the case of theft, fire, falling objects, explosions or other unexpected problems.
Collision and comprehensive coverage are required in most lease contracts, and are essential if you own an expensive car. If the sum of your premium and your deductible are close to the value of your vehicle — or if they exceed it — you might want to consider doing without this coverage.
UM/UIM, etc.
Uninsured or underinsured motorist coverage also might be a wise buy, even if you have full medical coverage, since it can pay for your pain and suffering damages. If you're offered roadside assistance coverage by your insurer, you might not need it if you already belong to an organization such as AAA that offers it. The same thing applies for mechanical breakdown insurance. If you own a newly financed or leased vehicle that's still covered under warranty, such coverage is unnecessary.