Do you remember buying your first new car? Or how about adding a teen driver to your policy? These experiences are often exciting and signify milestones in our lives.
However, these milestones come along with the responsibility to purchase auto insurance. Buying auto insurance isn’t as exciting.
Auto insurance includes different types of coverages, such as Comprehensive, Collision, and Liability. Trying to figure out the appropriate insurance coverage needed and the appropriate insurance limits to carry can be daunting.
In today’s litigious society, it’s crucial to make sure you have adequate liability insurance limits. Currently, liability insurance is required in 49 of 50 states. The limits required in each state may be different and may only be minimum requirements.
If you’re responsible for causing an auto accident and injuring another person or damaging their property, you could be held financially liable for damages if you’re underinsured.
In the video below, Jim Schwalen, vice president of Personal Lines and Marketing will explain:
- The different types of Liability insurance limits available;
- Auto accident scenarios; and
- How the different coverage limits apply.
Remember, it’s important to buy as much liability insurance as you can afford. Big losses usually occur on the liability side. If you don’t have enough liability insurance, you may be held personally and financially liable for the injuries and property damage you’ve caused.
If you have questions about your auto insurance policy, contact your insurance agent. Finding out after a loss that you don’t have adequate liability insurance limits isn’t a good situation for you or your insurance company.
Do you have any tips or information you’d like to share? I’d love to hear them; please share them in the box below.
This article is intended for general educational and illustrative purposes only and should not be construed to communicate legal or professional advice. Further, this article is not an offer to sell insurance. Please consult with your licensed insurance agent for specific coverage details and your insurance eligibility. All policies are subject to the terms, conditions, limitations, definitions, and exclusions contained therein.
