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Saturday, December 6, 2008

Car Insurance Liability Coverage - Do you Have Enough?

If you're a car owner, I'd like you to take a look at your liability coverage on your insurance policy. Is it only a paltry $500K, or is it $1 million or hopefully higher? A lot of car owners just blindly keep renewing their policies year after year without considering how much actual liability coverage they have. In my opinion, $1 million is no longer enough and you should really be taking it up to $2 million, which will cost you around $20 per year more than the $1 million level. This is even more important if you occasionally drive into the USA, since our dollar has fallen to about the 80 cent level.


Patrick said...

Uh... You never said why you think $1M is no longer enough.

Jim Somerville said...

Inflation over the years, combined with rehabilitative health care costs (that aren't covered by provincial healthcare) rising faster than inflation. Also the green movement has been encouraging more ride sharing so the odds of multiple people making claims against that $1 million is going up as well. You have 3 people in your car, and something really bad happens, well that million isn't going to go all that far. Not to mention if another car is involved full of people.