When I was in college, like many, I was on a tight budget. When it came to insurance I told my agent that I wanted the cheapest car insurance I could get. They then asked me what coverage levels I wanted. I confidently replied "the State Minimum"; thinking that this was surely the cheapest option! It took me years and thousands of dollars to realize how wrong I was. I don't know why my agent asked me what coverage I wanted, after I asked for the cheapest option, but I have a pretty good Idea. It seems that they were more concerned about their bottom line than mine. Over time I've seen how state minimum coverage can cost my clients more of their hard earned cash while running their quotes.
Also, If you're at fault in an accident, odds are that state minimums will not cover all the damages that may occur. The current minimum coverage in PA for damage to the other party's property is only $5,000. The average cost of a new car is $33,560; factor in medical costs and it's easy to see how an accident can quickly add up to over $100,000 in damages! If other the other party's underinsured motorist coverage kicks in their insurance company has the right to sue you for the uncovered losses; this right is called Subrogation. If they pursue damages against you the courts can garnish your wages, liquidate your assets (including: your home, cars, and some bank accounts). When you take all of this into consideration, State Minimum levels of coverage could be the most expensive coverage!
We try to provide our clients with the right levels of coverage while keeping their costs down. If you would like to see how much you can save by switching give us a call. We'd love to hear from you!