You have assets. You’re building up equity in your home. You have some savings – maybe even savings towards retirement.

Insurance protects your assets. Insurance can pay for your losses and cover your liability if there’s an unexpected tragedy. But you feel like insurance is a waste of money. You’ve never needed it. You’re a good driver. You’re spending money you’ll never get back.

So, you got the state minimum coverage, or something around there. Here in Arizona, your insurance covers your liability up to these limits – after you pay the deductible – and nothing more:

  • $15,000 per person, and $30,000 per accident, for bodily injury.
  • $10,000 per accident for property damage.

Now, some people remember when nobody could imagine a hospital bill that exceeded $15,000 . . . and there wasn’t a car on the road worth more than $10,000 . . .

. . . and that magical time was called the 1970’s.

Four decades later, $30,748 is the average purchase price of a new car. And the costs of hospitalization after a car accident can be HUGE.

If you have assets, and yet you only have state minimum coverage, then you are likely under-insured. If you become liable over your limits, you could be forced to either liquidate your assets or file bankruptcy. Even filing bankruptcy can be very problematic and put a portion of your assets in danger. Having enough liability coverage is part of being a good steward of what you’ve been given.

So, exactly how much insurance do you need? For that, you need advice based on your specific financial situation. The best place to go? An independent agent – like our own Brandon Ream.

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