Don't treat your auto coverage limit like a static factor. Just like auto insurance rates fluctuate with changes in circumstances, your auto insurance limit should also change with your circumstances. Know when to buy or decrease your coverage limits to ensure necessary and maximum protection. If you're unsure about your coverage, check out these life circumstances that definitely call for more auto insurance.
If You Modify Your Car
Standard auto insurance doesn't cover modified cars; many auto insurance carriers specify car modifications that their standard coverage
excludes. Most carriers will not cover any modification that structurally alters the chassis, body, or frame of the car. Many carriers also don't
cover modifications that cost thousands of dollars or increase the risk of an accident.
If you have modified your car, contact your carrier if you are not sure whether your coverage still applies. You may have to buy supplemental
coverage for your car if the carrier confirms that your policy doesn't cover the modification.
If You Use Your Car for a Side Business
You also need to buy additional auto insurance if you start to use your personal car for business purposes. A standard personal auto insurance
coverage only applies when you use your business for activities that don't earn you income. The only exception is your work commute, which is
covered under personal auto insurance.
However, you need additional coverage if you use your car to deliver pizza, sell things door-to-door, or for livery. Ask your carrier if you need to
buy an endorsement or commercial auto insurance coverage to maintain your protection at all times.
If Your Teenager Gets a License
The disproportionate number of accidents that teenagers cause is often due to their inexperience and affinity to risks. The risk that a member of your household will cause an accident increases when your teenager acquires their driving license.
Therefore, increase your liability coverage when your teenager starts to drive or when a teenager with a driving license joins your household. The
increased coverage will protect you from the accidents your teenager might cause until they become an experienced and safe driver.
If You Increase Your Assets
You should also increase your liability coverage if your asset base increases. The liability coverage comes to your rescue if someone holds you
liable for their auto accident. If an accident victim sues you for damages beyond your liability coverage limit, then they can come after your
personal assets to bridge the gap.
If you don't have substantial assets, then you don't have to worry about liability lawsuits because you can't lose what you don't have. If you have
gathered substantial assets, however, increase your liability coverage to shield those assets from lawsuits.
If You Lose Health Insurance
Auto insurance also pays for some of your medical bills in case you sustain injuries in an auto accident. Medical Payments (MedPay)coverage
and Personal Injury Protection (PIP) are the portions of your car insurance coverage that pay your medical bills in case of an accident.
You can make do with minimal MedPay or PIP limits if you have a good health insurance plan. However, increase your MedPay or PIP limits if
your health insurance is not that great or if you lose your health insurance. You will need the increased coverage to meet the shortfall your lack of
health insurance creates in case of an accident.
Talk to Harr &Associates Insurance, Inc. if you want to increase or decrease your coverage. We can help you evaluate your circumstances,
advise you on the suitable coverage,and help you buy the coverage at a reasonable cost.
Contact us
today for all your car insurance needs.
