How can you keep a collision from becoming a disaster?

Consumer Reports Money Advisor says to be aware -- the state insurance requirements may leave you vulnerable. Experts say if you own your own home or have assets, they could be at risk if you're underinsured.

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

It will raise your premiums about 10 percent, but its clearly worth it if it could save your home.

Another area where people are often underinsured is property-damage coverage. States typically recommend between $10,000 and $25,000 in coverage. But Consumer Reports Money Advisor recommends $100,000, just in case you hit a really expensive car.

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

Consumer Reports said its also wise 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.


Consumer Product Safety Information


Search