Auto insurance pitfalls

Far too often people purchase auto insurance at the lowest liability limits required by the state of residence. This can be a very bad mistake. Todays autos with all their gadgets cost a lot of money. If you damage one it can cost you more than you might imagine. That is just the property damage to the auto. The cost of human injury can and usually is much higher.Today a hospital stay may cost upward of $2,000 per day. Courts also award pain and suffering damages to individuals who may be injured by your negligence. Solution: Buy higher liability limits and play it safe.
These higher limits are generally much cheaper than people realize but you need to ask an agent to provide a quote for you. I have one client who increased his liability limits from the state minimum to $100,000/$300,000/$50,000 for about $75 more each year. That's right; the cost can be small indeed when you consider the level of risk that you are taking on when you drive an auto.
One other point; always ask your agent the A.M. Best rating of your insurance company. Look for companies rated A- or higher. Insolvent companies don't pay claims. These type companies leave you, the insured, holding the bag.