Something you have, but you likely don’t fully understand: auto insurance. What type of policy do you own? Is it enough coverage? The answer to that last question is probably “no.” The reason for you coming up short is a common one — money.
According to a recent study, the cost of auto insurance is on the rise. So far this year, the average rate has increased by 8 percent, and experts expect that to keep going up. This is good news for insurance companies, and bad news for you. Insurance companies are raising rates because it costs more to cover accidents. The rising rates are bad for you because you’re now paying more for the same amount of coverage. And, because everything costs more now, that coverage likely isn’t enough.
As MSNBC reports, when it comes to an auto policy, you want to focus on liability coverage. Liability coverage kicks in when you’re found to be at fault in an accident. It covers damage to property or other vehicles, and medical costs for any other drivers. Liability covers any lawsuits that could come. The reason you want to double check your liability coverage is because the cost of auto parts and the cost of medical bills have increased. The average price of car parts has jumped 13 percent over the last year, while the cost of medical bills has increased almost six percent. Check your auto insurance coverage to make sure you have enough. Also, be sure to shop around for policies so you’re get the best deal available.