Is Basic Auto Insurance Adequate?

With increasing economic challenges, most motorists are keen to cut their car insurance bill. As such, they may only stick to the state-required car insurance. But is it adequate? Is it wise to stick to basic car insurance? If you are anxious to find out the answers, please hang on as Ed Thompson Insurance Agency in Omaha, NE, discusses whether basic car insurance is a good idea.

Required car insurance in Nevada

Before getting far, the best place to start is looking at Nevada’s required auto insurance. If you drive or park in public places, Nevada requires you to include the below coverages in your car insurance.

• Bodily injury liability of at least $25,000 per person and $50,000 for an accident involving more than one person
• Property damage liability with a minimum of $20,000

So the million-dollar question is: Is the ("25/50/20") car insurance adequate? It’s a resounding no. If you are faced with a severe accident, the coverage limits are likely to be depleted, exposing your finances to uncovered auto accident expenses.

Besides, the above coverages don’t cover you and your vehicle. The state-required coverages are liability insurance policies that cover third parties only.

What we advise our clients

While meeting the minimum auto insurance coverages is superb, we usually advise our clients to:

• Increase limits: Given that the mandatory liability limits are insufficient, we advise our clients to increase limits to about $300,000 for bodily liability coverage and $100,000 for property liability damage. And if these limits are still insufficient, we advise you to invest in umbrella insurance.
• Consider other insurance coverages: For well-rounded protection, motorists should consider comprehensive, collision, and medical payments coverages. This way, you, your vehicle, and passengers are covered if the unthinkable strikes.

Are you looking for auto insurance in Omaha, NE? Please consider Ed Thompson Insurance Agency for all your auto insurance needs.