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Car insurance: Are you covered?

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If you don't have the right kind of auto insurance coverage, even a simple incident can end up costing you big time. Money Expert Nathan Bachrach shares some tips to help you decide if you have enough auto insurance.

There were more than five million car wrecks in the U.S. last year. Nearly half of those resulted in injuries. Would your insurance policy cover your costs if it happened to you?

The problem is that about fourteen percent of drivers are uninsured.

Another twenty percent more only have minimum coverage. If one of those drivers hits you, you could be in real trouble.

The folks at the Insurance Information Institute crunched the numbers and said it costs about $200 more per year, per vehicle, to take your liability limit from $50,000 to $1 million per accident. If you've got a rocky driving history, it'll cost you more.

How much coverage you need depends, partly, on your assets. If you make $30,000 per year and live in an apartment, you may be able to get away with the minimum limit of $50,000. If you make more and own more, you'll want more coverage.

One area you can save on - personal injury protection insurance. If you already have separate health, life and disability policies, you should be covered. Double-check with your agent to make sure.

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