The Basics of Auto Liability Coverage:
Liability coverage pays for damages in an accident that you are considered legally responsible for, up to your policy limits. Liability coverage applies to bodily injury as well as property damage, so if someone is injured or there is damage to their car or other property, your liability coverage will help pay for those expenses. Most states have minimum requirements for car insurance liability limits, but these minimums often don’t provide sufficient protection from financial hardship if you get into a serious accident. That's why it's important to always consider carrying higher limits than what your state requires.
Why Higher Liability Limits Matter:
If you are found liable for an accident, the costs can add up quickly with medical expenses and repairs. That is why having higher liability limits is so important; if the costs exceed what your policy covers, you could end up responsible for paying out-of-pocket expenses—which can be exorbitant depending on the severity of the accident. Furthermore, if the other party involved in the accident decides to sue then you may find yourself facing even more financial hardship than what was initially expected. Your auto insurance company may cover some legal fees related to defending yourself against such claims but once again, this heavily depends on how much coverage you carry and how much money is being sought after in court.
Auto insurance is one of those necessary evils that we all need but hope never to use. While we don’t like to think about all the worst-case scenarios that can arise when out on the road, carrying higher auto insurance liability limits can help protect you in a time of need. It’s also important to be aware that differences in insurance policies can have significant impacts on the coverage and premiums available when selecting one over another, so please do your research before making a decision. Consider speaking with your licensed agent today about increasing your liability coverage. And don’t forget to ask about an umbrella policy!