Do You Carry Enough Auto Insurance?

There are more than 6 million car crashes every year on roads and highways. It takes a split second for something to go wrong. And there's more than physical injury at risk -- a bad accident can wipe someone out financially.



Kathy Handel had a car crash last year. Her two children were in the backseat.



"It was really scary because the kids were screaming. They had never experienced anything like it," Handel said.





No one was hurt, and Handel was also lucky that she had enough insurance to cover the damage. But not everyone is so fortunate.





Consumer Reports' Laura Washington said drivers should be aware that the state insurance requirements may leave them vulnerable.





"If you own your own home, or if you have assets, they could be at risk if you're underinsured," Washington said.





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





"It'll raise your premiums about 10 percent, but it's clearly worth it if it could, if it means saving your home," Washington said.





Washington added that another area where people are often underinsured is property-damage coverage.





"States typically recommend between $10,000 and $25,000 worth of coverage. But we recommend $100,000 worth of coverage just in case you hit a really expensive car," Washington said.





In the chaos that follows a crash, people often forget what information they need. They should ask to see the driver's license and insurance card as well as the vehicle registration of the other person involved. They should also be sure to note the make, model and license plate of the vehicle.





Consumer Reports says it's a good idea to carry a disposable camera in your car in case of a crash. You can take pictures of the scene, your car and the other vehicle involved. This can help protect against claims for damage that you didn't cause.