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When To Raise The Liability Limits On Your Policy
August 23rd, 2010
You must have come across the term, liability coverage, when searching online for car insurance. Car insurance liability protects you if you are found liable or responsible for something. This could be costs associated with bodily injury or property damage. Every state in the United States requires drivers to hold at least a minimal amount of liability coverage. The minimum liability limit could differ from state to state.
Car insurance liability covers costs related to bodily injury per person, the total costs of bodily injury to everyone in the other car and any property damage that you caused. The minimum liability limits in most states are "25/50/25" or "25/50/10" and these numbers represent thousands of dollars. For example, in the case of 25/50/25, the insurance company will pay $25,000 for bodily injury to each person, $50,000 for bodily injury for that particular accident and $25,000 per accident to solely cover property damage.
When you are searching online for car insurance, it is easy to become distracted when you see low rates for minimum liability coverage. However, low rates may not always be enough to protect you in case of injuries or damages resulting from an accident. For example, if you have only taken the minimum insurance that is required. If there is an accident and if you are sued for something that you are liable for, the maximum amount you will get from the insurance company will only be up to your liability limit. Any amount beyond that will have to come from your own pocket. The liability limits in California serves as another example. The liability limit in California, which is known for its new car sales, is 15/30/16. This liability limit hardly provides any protection if a driver should have an accident involving another individual's new car.
If you wish to protect yourself financially in case of a car accident, raising the liability limits on your car insurance policy is a good idea. And, it doesn't cost that much either. Based on several factors like, your car, the area you live in and your assets, a limit like 100/300/100 would give you the protection without burning a hole in your pocket. While this is the best liability coverage that most insurance companies recommend, you could consult with your insurance agent or research online to find a liability coverage that works for you.
No matter which part of the United States you live in, if you drive a car, car insurance is a must. While you may not need full insurance, minimum liability coverage may not be the best option either. Protect yourself financially by raising the liability limits on your policy.
