Whenever you’re looking into getting auto insurance, you’re going to talk about liability insurance. Everyone understands minimums. Purchasing the minimum amount of liability insurance means you get a lower rate, right? But what are you really buying?
Do I Have to Get Liability Coverage?
LiabilityCoverageYes. Liability coverage is required by law, but the minimums of what you’re required vary from state to state. In California, the minimums required for liability coverage for a single accident are as follows:
- $15,000 for injury/death to one person
- $30,000 for injury/death to more than one person
- $5,000 for damage to property
There’s A Minimum, But Is There a Maximum?
There is. While insurance companies are required to provide the minimum amount of coverage, on the flip side, they also have limits of how much liability coverage they will offer. This insurance maximum differs per company, but typically, insurance companies will not offer liability coverage over $500,000.
Who Does Liability Insurance Cover?
Liability coverage does not apply to you and your needs in the event of accident. It’s meant to cover another person or persons in the event of an accident where you are found at fault. Liability comes in two forms: bodily injury and property damage. Your liability coverage is meant to provide compensation to a third party up to the agreed upon amount. These minimums are required by law to ensure every driver has the bare minimum of protection in the event they are found at fault in an accident.
Liability Insurance Covers Them, What About Me?
Bodily injury and property damage done to you and your vehicle are covered under the medical part of your comprehensive auto insurance plan. We’ll talk more about medical coverage later.
Minimums and Maximums – What’s The Right Amount of Coverage For Me?
How much coverage you should get is dependent on a number of factors. More coverage is better. Accidents exceed those state-mandated minimums very quickly. Consider the property damage minimum as an example. Most cars are worth over $5,000. If you were found at fault for an accident in which a car was totaled, you’d exceed the minimums easily. Any costs incurred outside your minimums will come straight out of pocket, so of course, more is better.
There are many factors you want to look at. It’s not always about how much coverage you can afford but what you can stand to lose in the event the worst happens. If your insurance is unable to cover the other party’s bodily injury and property damage, there is always the possibility they’ll file a lawsuit. In that eventuality, your assets would be at risk. Additional liability coverage might drive your premium up but they cover your assets as well as the third party.
Talk to an insurance professional today. Here at Omni Safe Insurance, our insurance professionals can help you decide what amount of coverage is best for you. Talk to one of our friendly agents today. Let us work with you to find the right amount of coverage at a competitive rate. Contact us today or fill out our free quote form.