Selecting the Right Auto Liability Coverage

Choosing your auto liability coverage limits is an important decision. For that reason, we've created this brief video. We want to make it easy for you to understand your insurance options. This way, you can make an informed decision on the ways you can protect yourself, from potential financial ruin. What exactly is liability coverage? Well, liability coverage pays for the injuries, or damages to other people or their property, caused by you or someone driving your vehicle. The two liability coverage types are bodily injury and property damage. Each state has their own minimum liability insurance limits. Let's walk through a brief example, that will help you to better understand the importance of having the appropriate liability coverage levels. Let's say you were at fault in an accident. You were distracted momentarily and rear-ended the Lexus in front of you. There are four people in the car, all of whom suffer some injuries. And for discussion purposes, we'll imagine that you live in San Diego, and have the California minimum coverage levels in place, a $15,000 per person, $30,000 per accident, and $5,000 in property damage. This means your insurance company, would cover the cost of anyone's personal injuries, rehabilitation expenses, pain and suffering, and time lost from work up to $15,000. They would not pay more than $30,000 for the accident, regardless of how many people were injured. This is the bodily injury portion of liability insurance, and your insurance company would also pay up to $5,000 for the property damage. Now let's take a look at how your coverage would apply. There are four people injured, and the cost to cover their injuries totaled $93,000, and the damage to their vehicle was $13,000. So in reviewing your coverage amounts, you will see that your policy would pay $30,000 for all injuries, and $5,000 for the property damage. So where does the remaining $63,000 for bodily injury, and $8,000 for property damage come from? Well, once your policy pays the maximum limits, you could be held personally responsible for the remaining amount. In this example, this would mean that you would be responsible for paying a total of $71,000 out of your own pocket. This is why it is so important, that you consider carrying more than the state minimum coverage amounts. After all, it's not difficult to see how a simple fender bender like this, could end up costing you tens of thousands of dollars if you maintain the minimum coverage levels. Call us today to learn how you can learn more about how we can show you the options available, that will help protect you from this financial risk.