Buy as much as you can afford – There is no way you can know how much you will need. – Baird Morgan CEO, AmeriAgency Inc.
State Minimums – Each state has minimum levels of liability for auto insurance policies. In Tennessee the minimum legal limits are 25/50/15 for split limits. Let’s break down what this means. The first number means you will have $25,000 for injuries to one person in the other car. The second number means you will have up to $50,000 for the total injuries in the other car. The last number 15 means you will have $15,000 to fix the other car. These pay outs from your insurance company are based on you being legally at fault for the damage to the other person and/or car.
State minimum coverage means you meet the minimum legal requirement and is better than not having insurance. You protection is real but minimal. Poor
50/100/50 is generally the next level of coverage. It you have twice as much protection as minimum limits, but doesn’t cost twice as much. OK
100/300/100 is generally considered prudent limits. Good
250/500/250 is very prudent limits. Better
A $1,000,000 or $2,000,000 umbrella on top of high auto limits is the most prudent. Best
Generally get as much as you can afford. As you get older and have more to lose and you have a stronger ability to pay insurance premiums, you should get higher limits.
Call AmeriAgency at 615-209-9362 for personalized advice.