Why You Should Increase your Auto Insurance During a Recession

We all know we're experiencing one of the worst recessions in decades. But what you might not know is that Texas is one of the highest-ranked states in terms of uninsured drivers. We also live in a state where there's an extremely high number of drivers who only carry the minimum limits of liability insurance, which is only $25,000. This is bad news for everyone on the roads.

When the economy slows down like it has, it is my belief, as well as the belief of economists, that people will cut back in every way they can-including canceling their car insurance policy or reducing the coverage that they already have. It's one easy way to save money.

But the consequences of everyone else saving money on car insurance can be catastrophic to your own finances if you are in a car accident. The cost of medical care increases each year. Even if a party who causes a wreck has the minimum limits of insurance, a trip to the hospital after an accident can easily consume that entire policy.

So what's a responsible Texan supposed to do? I strongly suggest you buy as much uninsured motorist coverage as you can afford. I hate seeing the financial hardships caused to my clients who fail to carry Uninsured/Underinsured Motorist Coverage (UM/UIM). UM/UIM provides you with compensation to cover your medical bills and lost wages if you find yourself in an accident and the at-fault person either doesn't have any insurance at all or doesn't have enough insurance to compensate you for your injuries. Basically, you are buying protection to cover other people's mistakes.

I sincerely believe that dollar for dollar, UM/UIM coverage is the best value of any insurance coverage. It's typically cheaper than your normal liability coverage and covers the most important people: you and your family. UM/UIM coverage also covers you if you're the victim of a hit-and-run driver.

Since most insurance companies use credit scores and other things to help determine what rates they will charge you for their insurance, it's impossible for me to tell you how much UM/UIM coverage will cost you. But I do know that it's worth the money to safeguard you and your family in case of an accident.

Contact the Anderson Law Firm online, or by calling 817-294-1900 for a free consultation on your rights.