Most drivers in Marshall, MI, understand that minimal auto insurance is rarely enough to provide proper protection. However, many are unsure when they need additional coverage to fully safeguard themselves. The professionals at Great Michigan Insurance can help you select a policy that aligns with your financial situation and driving risks.
Net Worth Makes a Difference
Your net worth includes more than the money you have in the bank. It also reflects the value of your home, vehicles, and other possessions. If your net worth is significantly higher than your policy limits, you may need more coverage. Increasing your liability limits or purchasing umbrella insurance may be a smart financial decision. Many experts recommend considering umbrella insurance if your net worth exceeds $500,000.
If you cause an accident, attorneys for the injured party can pursue compensation from your assets, including your home equity and future earnings. Adequate coverage helps protect you from these types of financial risks.
Adding a teen driver to your policy is another situation that requires careful consideration. Teen drivers are more likely to be involved in accidents. Because of this increased risk, many professionals recommend carrying at least $100,000 per person and $300,000 per accident in bodily injury liability coverage when a teen driver is on your policy.
Other Situations to Consider
If you work for a rideshare or delivery app, you may spend time with the app on but without an active trip. During this period, neither your personal insurance nor the company’s insurance typically provides coverage. A rideshare endorsement on your personal policy can help close this gap and protect you during these times.
Leasing a vehicle can also create a financial gap. If your leased car is totaled, you may owe more than its actual value. Gap insurance helps ensure you are not responsible for paying the difference out of pocket.
Great Michigan Insurance can help you design an auto insurance policy that provides appropriate protection for these scenarios. Contact our Marshall, MI, office to get started today.
