What's your insurance limit?

By Seth Zaremba, Zinc Insurance

Do you know what your insurance limit is?

That’s okay, most people don’t. An insurance limit is the amount of money an insurance company will pay out on your auto insurance if you get into an accident. It’s their limit of liability.

When people shop for auto insurance, what they’re really buying is a limit. Typically, the lower the limit, the cheaper the insurance. But take a minute to think before you decide to scale things back.

Choosing a liability limit should be based on how much you have to lose if you get into an accident. If you’re young, don’t own a home and don’t have a family to support, you might be fine at a lower limit.

But if you’re of an age where life’s responsibilities have started to result in the accumulation of things of value, you need to think carefully about what your limit should be.

You might have a house, a nicer car and a 401k plan, but you’re still cruising around on the same $100,000 limit you had when you were 20 because the rate is low. For about $75 more a year, you can increase your limit by $200,000. So, if you hit a $100,000 Mercedes and injure the driver, you won’t have to give up your assets to pay that person’s bills.

If you’d like to have an intelligent conversation about how to protect your assets by setting an appropriate coverage limit, I invite you to give me a call.

Zinc Insurance is located at 3505 E. Royalton Rd., Suite 110, in Broadview Heights. The phone number is 440-740-3540. Office hours are Monday-Friday, 8:30 a.m.-4:30 p.m. Find them online at ZincInsurance.com and on Facebook at Zinc Insurance.