Consumer Alert: Under-insured auto

post by palado

(National) June 9, 2005 - Kathy Sommerich Handel had a car accident last year. Her two children were in the back seat. "It was really scary because the kids were screaming. They had never experienced anything like it."

Fortunately, no one was hurt. Kathy's also lucky that she had enough insurance to cover the damage, so there was no financial impact either. How can you keep a collision from becoming a financial disaster?

Consumer Reports Money Adviser Laura Washington says be aware, the state insurance requirements may leave you vulnerable. "If you own your own home, or if you have assets, they could be at risk if you're underinsured."

So what's sufficient auto insurance coverage for homeowners? For both bodily-injury and uninsured motorist coverage, you should be covered for $250,000 per person and $500,000 per accident.

Washington says, "It'll raise your premiums about ten, ten percent, but it's clearly worth it if it could, if it means saving your home."

And the Consumer Reports Money Adviser says another area where people are often underinsured is property-damage coverage. "States typically recommend between $10,000 and $25,000 worth of coverage. But we recommend $100,000 worth of coverage, just in case you hit a really expensive car."

And in the chaos that follows an accident, people often forget what information they need. Ask to see the driver's license and insurance card as well as the vehicle registration. Also, be sure to note the make, model and license plate of the car.

Kathy says she made a point of staying calm after her accident, and that helped ensure that she got the information she needed.

Consumer Reports says it's a good idea to carry a disposable camera in your car in case of an accident. You can take pictures of the scene, your car and the other vehicle involved. This can help protect you against claims for damage that you didn't cause.
Reported by Judi GatsonPosted 3:40pm by Bryce Mursch

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