Liability Insurance — What You Don’t Know Can Cost You

Liability Insurance is A MustCalifornia law requires all drivers and vehicle owners to carry liability insurance, but it does not require you to have enough liability insurance to truly protect you in the event of a serious accident. The state mandated minimum coverage is just 15/30/5 which means $15,000 for bodily injury to a single individual, $30,000 for all individuals hurt in a single accident and $5,000 to cover any property damage you may have caused.

If you own a home, you probably have California homeowners insurance and a portion of your premium goes for liability coverage. Do you know how much liability coverage you have? Do you know how much liability coverage you need?

California Tort Law Holds You Personally Liable

Any claims beyond the limits of your insurance coverage may result in an attempt to claim the difference by the injured party. To protect yourself from being personally liable, you should carry enough liability insurance.

What is the Right Amount of Liability Insurance?

The right amount of liability insurance you should carry depends largely on your net worth and how averse you are to risk. If you have a million dollar house and other substantial assets, you would probably carry enough liability coverage so those assets are not put at risk in the event that you are found liable for injury or damage to another party.

What Happens if I Get Sued?

If you are involved in an automobile accident and found to be at fault, your insurance will protect you up to the limits of your policy. Your insurance company will also assist you in the event that the damaged party decides to sue you. Legal defense in any type of liability case can be very expensive. Insurance can cover those costs. Even if you are completely innocent, you may still need to hire an attorney and spend thousands in fees just to clear your name. No matter how careful you are, you should always carry adequate liability insurance – just in case.

How Much Car Insurance Do I Need.

How Much You Need ?Every year thousands of people are involved in a car accident. Some accidents are very costly and others only require small a small amount of money to fix. In some cases the insurance coverage is more than enough to cover all losses, and in other cases it falls short in covering all expenses. So how much coverage is enough for an insurance policy?

There are several things to think about when deciding about the amount of coverage for an auto policy. The first question to ask is “If there was an at-fault accident, what coverages would be enough to cover all the injury and damage that can occur?” In most cases, hospital bills run into the thousands and damages to property can be just as high. The state minimums are set to cover only minor expenses. Most recommendations for liability coverage are around 100/300/100. Some people will often carry the 250/500/100 limits for just a few dollars more. In some states it is actually cheaper to carry the higher coverage limits versus the minimum amounts.

One other thing to consider is “How much physical damage coverage is enough to carry on a personal auto?” The only thing to think about is whether you can handle the deductible amount in the event of a claim. If paying $500 is within your means then you can save a little on the auto premium.

Insurance amounts are designed to protect the policy holder in the event of a claim or loss. If the insurance coverage is not enough to pay all losses then the policy holder can be sued for the rest. Check with an insurance agent for what may be right for you.