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You know the feeling. You leave for vacation but can\u2019t figure out what you forgot to pack.<\/p>\n
It\u2019s like preparing for retirement. You have to sort through debts, IRAs, 401(k)s, and \u2026 car insurance? Yes, your to-do list should include choosing the right car insurance.<\/p>\n
Otherwise, you could throw money out the window or not have enough coverage when you need it. Let\u2019s get started!<\/p>\n
The following stats only apply to the U.S.:<\/b><\/p>\n
Howmuch.net put together a visual for\u00a0how much money you need to enjoy a comfortable retirement in each state<\/a>, along with these eye-opening numbers:<\/b><\/p>\n As you can see, it takes hard work, careful spending, and good decisions to build your nest egg.<\/p>\n Retirement should inspire you to save money. You think about cutting cable, eating out less, and using the budget as a map instead of a compass.<\/p>\n You don\u2019t want a car accident to affect your finances. Before you decide to lower your car insurance coverage, you should know more about how your liability limits work.<\/p>\n Liability coverage kicks in when you\u2019re legally responsible for a car accident, and it includes two parts:<\/b><\/p>\n Bodily injury helps pay for legal fees, as well as the injured parties\u2019 medical expenses and lost wages.<\/p>\n Property damage liability covers the cost of:<\/b><\/p>\n \u00a0<\/p>\n What happens when you don’t have enough car insurance? You pay for damages with your own money.<\/p>\n Take a look at these\u00a0average\u00a0hospital costs<\/a>:<\/b><\/p>\n In 2010, the National Highway Traffic Safety Administration (NHTSA) estimated that\u00a0the average auto fatality costs an average of $1.4 million over a lifetime<\/a>, and a critical injury from a car accident costs an average of $1 million over a lifetime.<\/p>\n The average new vehicle costs\u00a0over $37,000<\/a>.\u00a0Vehicle repairs are nearly 61% more expensive\u00a0<\/a>than they were in 2000 thanks to new technology and rising parts expenses.<\/p>\n If you cause an accident that totals another driver\u2019s new vehicle, lower limits probably won’t cover all the damage and hospital bills.<\/p>\n \u00a0<\/p>\n Liability limits are written like this: 25\/50\/20 or $25,000\/$50,000\/$20,000.<\/p>\n Here\u2019s what those numbers represent: bodily injury liability per person\/bodily injury per accident\/property damage per accident.<\/p>\n If you cause an accident and carry the liability limits listed above, insurance will pay up to:<\/b><\/p>\n An umbrella policy offers liability coverage beyond your regular limits. It would add extra bodily injury and property damage coverage to your car insurance.<\/p>\n Remember when we talked about looking for ways to save?<\/p>\n\n
\u00a0<\/h3>\n
Car Insurance, Your Nest Egg, and Liability Coverage<\/b><\/h3>\n
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Lower Limits, Higher Risk<\/b><\/h3>\n
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Put Your Policy Limits Under the Umbrella<\/b><\/h3>\n
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\u00a0<\/h3>\n
Better Ways to Save<\/h3>\n