Make Sure you have Enough Automobile Liability Insurance Coverage

Many people believe they are “fully insured,” when in reality they have only minimum or close to minimum coverage.   The minimum liablity and uninsured motorist limits in New Hampshire are $25,000 per person, and $50,000 per accident.  With the cost of medical care and the potential financial devastation caused by a serious accident, these minimum limits are woefully inadequate.  I advise my clients to purchase $250,000 per person and $500,000 per accident.  I also advise my clients to strongful consider purchasing excess coverage, known as an umbrella policy, with $1,000,000 in coverage.   This umbrella coverage is layered on top of your primary automobile insurance policy, providing you with substantial coverage and protection not only if you are sued in an accident that is your fault, but also for the protection of yourself and your family if you are injured through the fault of an uninsured or underinsured motorist. An umbrella policy is also layered on top of your homeowner’s insurance policy, providing the same $1,000,000 in additional coverage for injuries arising from causes other than an automobile or pedestrian accident.  And, you will typically find with most insurance companies that the increase in premiums due to raising your liability limits and purchasing an umbrella policy is relatively minimal.   For your own protection, you should review your coverages with your insurance agent this week.