It’s not about the commercials- its’ about the policies! Often times we give less thought to the type of car or truck insurance we choose than the thought we put into ordering a pizza. Car insurance should not be chosen based simply on knowing an agent or the price of the policy. Poor decisions on picking the right policy can have catastrophic results if you cause a wreck or more importantly, if you are injured as a result of another driver. Here are 3 critical things to consider the next time you are renewing your car insurance:
1) Do you have enough liability insurance? Don’t get the state minimum (in Arkansas it is $25,000.00) simply because it is the cheapest. You need insurance that will protect your assets in the event you get sued. At the least, you should have a 50/100/50 policy (Protects you up to $50,000 per person, $100,000 per collision and $50,000 for property damage i.e. other cars) and I advise most of my friends to get at least 100/300/100 policy depending on their station in life.
2) Do not protect yourself LESS than you are protecting others. The single biggest mistake we see as attorneys are clients who have too little, or none at all, in uninsured or underinsured insurance policies. You should always protect yourself up to $100,000 with an uninsured/underinsured policy. This is critical!
3) Get the largest medpay policy that your company will allow. Medpay covers hospital bills for anyone in your car, in any accident, regardless of fault. This is by far the cheapest type of car insurance and has the most value. Most companies only offer the state minimum ($5,000.00 in Arkansas) but you should ask your agent to include quotes for medpay for a higher amount. Most will allow you to go to $25,000 and higher.