“My kids and I were in a pretty serious car accident last summer.  Luckily, we are all ok, including the other driver and her passenger.  The accident was my fault. 

Now that the initial shock and stress has worn off, I keep thinking how glad I am that we had the proper auto insurance coverage and limits along with an umbrella liability policy with excess  uninsured/underinsured motorist coverage. Here is why:

What if the accident had been worse?

Although we are all ok, this accident was very costly on both sides.  What if we didn’t have proper liability coverage limits on our policy?  How much of our life savings would be at risk?  I cringe to think about it.

What if it had been the other driver’s fault and the other driver didn’t have any insurance? Or what if they carried just the minimum amounts required and one or both of my kids or even all three of us had very serious medical injuries?

Yes, my family has health insurance to cover our medical bills and emergency savings to meet our out of pocket max.  Yes, I have adequate disability insurance to cover my lost income if I couldn’t go back to work.  BUT, what if we didn’t have emergency savings or a disability policy?  Or what if even just one of us needed in home care for the rest of our lives?

When I think of these things, paying an extra few hundred dollars more in premium each year for the proper coverages and coverage limits is peace of mind. It’s saved us once. I don’t want to take the chance we won’t need it again.”

Krista J. Winograd, CFP®, NAPFA-Registered Financial Advisor