Why You Should Break the Compulsory Limit #insurance #ma

And you thought I meant Speed Limit. You wish!

No, what I am really talking about is your insurance. The state of Massachusetts requires you to have liability limits on your policy covering you for bodily injury to others in case of a car accident.  On your auto policy, you must have a minimum of $20,000 per person and $40,000 per accident.

It may seem enticing to keep the minimum. After all, you’ve never had an accident, right? You may be a perfect driver now, but that could change any time you take the car out for a spin. And what if you do get into an accident? That $20,000 per person, $40,000 per accident sucks up really quick when the other driver is rushed to the hospital.

Then where is the money going to come from?

That’s really the kicker.

You.

Yes, that’s right. The injured party can now come after you for any money that exceeds the limits on your policy. This puts you and your personal property at serious financial risk.

Of course, that’s why insurance companies offer higher limits than $20,000/$40,000. And it’s really inexpensive to raise your limits. If you look at your policy and want to save money, that’s really not a place to cut corners. (Which is why Commerce offers discounts!)

For the same reason, homeowner’s insurance policies can come with Umbrella policies. They extend your liability limits on home and auto up to 5 million dollars! And those are also pretty cheap.

Contact us if your are interested in getting a quote on higher limits. Bad things happen. Isn’t it better to spend a little and save a lot?

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