Why You Need More Than The State Minimum Liability Coverage

Auto liability coverage is what protects your pocketbook in the event you cause an accident
while driving. It is required in all 50 states and each state has set its own minimum requirement.
In Claremore, OK, that minimum is 25/50/25. That’s one of the lowest minimums to be found.
Let’s break that down. In Oklahoma you need to have, at minimum, liability coverage up to
$25,000 per person per accident with a cap of $50,000 per accident and also $25,000 for
property.

If all you carry is the state minimum liability then you can see how one bad accident could easily
cost much more and the remainder will be coming out of your own pocket. Medical bills can
easily be over $25,000 especially if surgery or a hospital stay is required. If you hit an expensive
or brand new car (or two) then $25,000 might not be nearly enough. You can quickly find
yourself facing bankruptcy and bad credit if you don’t protect yourself upfront.

Many people choose to go with the minimum because they are trying to save money on the
monthly premiums but this way of thinking only saves you money if you never get into an
accident, which no one can predict. Many insurance companies will suggest you get at least
100/300/50 insurance ($100,000 per person per accident up to $300,000 total per accident and up
to $50,000 for property.) However, the amount of liability insurance you really need is heavily
dependent on your own unique financial situation. Roughly, you need to figure out your assets
and savings combined and make sure that you are protected for at least that amount so that you
don’t lose everything in the event of a high ticket accident.

In addition to extra liability, you might also consider full coverage and collision insurance as
well to protect your own body and property. If you have a newer or more expensive car this is
especially important. Otherwise, if your car is totalled or damaged in an accident you cause, you
will have to pay out of pocket the full cost of repairs or replacement.

There are other ways to reduce your monthly costs, such as making draft payments, being a safe
driver, multi-car discounts and more. Carrying a higher deductible is the most significant way to
reduce monthly premiums. Make sure that you are carrying enough liability insurance to protect
yourself.