Auto insurance is a type of insurance that is mandated by state law in Iowa and Minnesota. All drivers are required to carry minimum limits of at least $20,000/$40,000/$15,000 in Iowa and $20,000/ in Minnesota. Our agency encourages drivers to carry auto limits that are higher than the state requires due to the earning potential and assets of individuals. Most people who have insurance have $100,000/$300,000/$100,000, but many carry our policy maximums of $500,000/$500,000/$500,000. The state minimum insurance limits represent bodily injury maximums per person ($20,000) and per accident ($40,000). If you injure another person in a car accident and the medical bills, lost wages and pain and suffering exceed $20,000 in costs, YOU would likely be held personally liable for claims over your limits. With rising health care costs and increased litigation, $20,000 doesn’t go very far in a car accident.
Liability Insurance is the most important aspect of your auto insurance policy. Every time you get behind the wheel, you are driving a potentially dangerous vehicle and as a result, you could be held personally liable for hundreds of thousands of dollars and even millions of dollars. It is important to be certain that your liability coverage is keeping up with your assets and earnings so that your assets and wages would not be seized in the event of a bad accident.
Uninsured Motorist coverage is often misunderstood. Uninsured motorist does not pay out to uninsured motorists. Uninsured motorist coverage protects YOU from having to pay potential medical bills, loss of wages and pays YOU pain and suffering if an uninsured motorist causes YOU bodily injury or passengers in your vehicle. We recommend carrying at least the same amount of coverage for uninsured motorists as you would for your top line bodily injury.
Medical Payments coverage is always primary and pays all reasonable and customary expenses for necessary medical services furnished, up to the policy limits. All motorists should carry at least $5,000 in coverage, unless you waive the coverage. Our office is able to offer medical payments up to $50,000. If you do not have health insurance, it’s a good idea to consider carrying maximum medical payment limits. If you are injured in a car accident, your medical bills will add up quickly!