You know the feeling. You go on holiday but can not remember what you forgot to pack.
It’s like preparing for retirement. You have to sort through debts, IRAs, 401 (k) s and … car insurance? Yes, your to-do list should include choosing the right car insurance.
Otherwise, you may be throwing money out the window or not having enough coverage when you need it. Let’s start!
Pension number you should know
The following statistics apply to the United States only:
Howmuch.net put together a picture of how much money you need to enjoy a comfortable retirement in each state, along with these eye-opening numbers:
- Average annual expenses for someone over 65: $ 51,624
- Average savings needed for retirement: $ 904,452
As you can see, it takes hard work, careful spending and good decisions to build your nest.
Car insurance, your housing and liability protection
Retirement should inspire you to save money. You are thinking of cutting the cable, eating less out and using your budget as a map instead of a compass.
You do not 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.
Liability protection begins when you are legally responsible for a car accident, and it contains two parts:
- Body injury
- Property damage
Physical injury helps pay for legal fees, as well as the injured party’s healthcare costs and lost wages.
Property damage liability covers the cost of:
- Vehicle repairs
- Lawyer costs
- Lost income
- Repairs of buildings, mailboxes, fences and more
Lower limits, higher risk
What happens when you do not have enough car insurance? You pay damages with your own money.
Take a look at these average hospital costs:
- Cost per day: $ 3,949
- Total stay: $ 15,734
In 2010, the National Highway Traffic Safety Administration (NHTSA) estimated that the average car death costs an average of $ 1.4 million over a lifetime, and that a critical injury from a car accident costs an average of $ 1 million over a lifetime.
The average new car costs over $ 37,000. Vehicle repairs are almost 61% more expensive than they were in 2000 due to new technology and rising spare parts costs.
If you cause an accident involving another driver’s new vehicle, lower limits will probably not cover all injuries and hospital bills.
Put your policy boundaries under the umbrella
Liability limits are written as follows: 25/50/20 or $ 25,000 / $ 50,000 / $ 20,000.
Here’s what these numbers represent: personal injury liability per person / personal injury per accident / property damage per accident.
If you cause an accident and bear the liability limits set out above, the insurance pays up to:
- $ 25,000 if a single person is injured (with some exceptions, depending on the policy)
- $ 50,000 if more than one person is injured
- $ 20,000 for property damage
An umbrella policy offers liability protection beyond your usual limits. This would add extra protection for bodily injuries and property damage to your car insurance.
Better way to save
Do you remember when we talked about looking for ways to save?
See if you qualify for Pekin Insurance car discounts For example:
- Car / home
- Paid in full
- Defensive Driver (Not Available in Indiana)
You can also insure motorcycles and recreational vehicles on our car insurance!
Something else for your to-do list
Find more retirement guidance with these Pekin Insurance blog posts:
Talk to your local, licensed Beijing Insurance Agent about the right car insurance for retirement.