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Auto Liability insurance coverage
is the most important
type of auto insurance
coverage
and is mandatory in
most states.
Liability car insurance is
made up of two different policies,
bodily
injury liability, and
property damage liability.
Bodily injury protects you from the cost of personal injury to others, and property damage
protects you from the cost of damage you cause to any physical property.
It may be tempting to save money by going with the minimum liability insurance required
in your state but It could be worth investing in a little extra protection.
Carrying too little auto accident liability can expose you to judgments and legal costs
for years to come and can cost you your drivers license..
Most
states require something like
50/100/25 in liability coverage.
50 and
100 are
Bodily injury
Liability Limits.
That's up to $50,000 coverage for any
single person injured by you
in an auto accident. (Max.
for one persons claims)
$100,000 for everyone injured. (This is the limit
for all liable claims involved)
Not a lot of money for medical bills, lost wages, and
compensation for pain and suffering
$25,000 is property damage
limits.
Bodily injury liability, Pay special attention to
this.
It's easy to imagine the cost of personal injuries (plus pain and suffering and lost
wages)
totaling a million dollars from a somewhat serious accident.
You should probably carry more.
Auto Liability Insurance coverage (anything you get over the minimum)
gets cheaper as you
buy more.
This means that your premium goes up a little, while your protection goes up a
lot.
The standard (the average, not the minimum) auto liability policy is 100/300, where the
300 stands for $300,000 in total bodily injury liability.
A good idea is you take out at least $300,000-$500,000 worth of
personal injury liability, even if that means less
property damage coverage.
Why?
Property damage from an accident won't be nearly as expensive as personal injuries can be.
So the $25,000 worth of property damage liability coverage in our example policy is
probably adequate.
(Of course, you can be on the safe side with more.)
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