Don't Under OR Over-Insure

We previously wrote about the problem with under-insuring yourself, specifically the risk that your assets could be lost if you have too little liability insurance on your car policy.

But there's another danger.

Your insurance agent could be trying to make you pay too much.

I'm not talking about your current insurance costing more than it might if you called me (which could also be true, but that's a different subject). If you're an individual who's renting an apartment, and you're in a minimum-wage job (good luck affording your apartment, if that's the case - but we digress), to have a policy which could pay $100 thousand per person injured and up to $300 thousand for each incident is going to cost you too much, relative to your income.


The truth is I'd agree that the above coverage is a minimum everyone should have, because if you're in an accident and other people are hurt, it COULD cost that much.

But as you know, if money's tight, you might have to take a gamble that nothing bad will happen. If you have a good agent, (s)he can talk to you about starting with a smaller amount of liability coverage, and then increasing  a little bit at a time, as time goes by. Yes, the increases in coverage will cost you more, but you'll be making the increases gradually, as your earnings increase.

If you haven't met with your agent to discuss this kind of question, you have (I'm sorry) the wrong agent. If you'd like to discuss your levels of coverage and how much it should cost you, call me. I'm a Farmers agent and can meet you at or near your home, or at my office.

Call me at 602-466-2636 (Office) or 480-628-9786 (Cell). Thanks.