The liability portion of your auto insurance policy will cover any injuries or damage to another person or their vehicle. Every state in the United States requires you to carry at least their specified minimum of liability insurance if you are driving a vehicle. It is common for states to have a 20/40/15 which translates into $20,000 for an injured person, $40,000 for more than one person injured per accident, and $15,000 for any damage to another person’s vehicle.
Some go with the least amount of insurance that they can get away with considering the costs of auto insurance are generally pretty expensive. Take into consideration the high prices of medical treatments and lost wages, if you were to be involved in a serious accident and you were found at fault, you could be stuck paying hundreds of thousands of dollars out of pocket to cover other people’s medical bills.
In all auto insurance agents’ professional opinion, liability is the most important area of your auto insurance policy. You should inquire about getting the maximum amount of coverage you can afford rather than the minimum amount you can squeak by on. You may also consider getting an umbrella policy which will increase your coverage limit to a higher level of protection.
You need to have an adequate amount of liability coverage in order to protect your assets from being taken in a lawsuit, as well as to protect your future assets from any judgments that may result from an injury lawsuit. Not only do you need to have an adequate amount of liability coverage to protect yourself, you need to have it to cover your own moral responsibility to improve a situation that you caused, such as seriously injuring someone.
To help yourself obtain a full coverage auto insurance policy you should think about getting additional coverage such as uninsured motorist protection, personal injury protection, towing and road service, rental car reimbursement, as well as gap coverage. Uninsured motorist protection will cover you if you are involved in a collision with someone who doesn’t have any auto insurance, or has insufficient amounts of coverage by reimbursing you for any losses you suffered from.
Towing and road service and rental car reimbursement are exactly what they say they are, and gap coverage is designed for those who are making payments on their auto to a car dealership or bank. Gap coverage is specially designed to cover the gap of the amount you owe, and the amount the car is worth if it becomes totaled or is stolen and never found.
This is truly a great investment if you are paying on a car for a few years considering many people are upside down on their vehicle’s, meaning they owe more than the car is worth. Imagine if you were paying off a vehicle that is KBB at $5,000 but you owe $8,500. Now imagine that car was stolen and was never seen again, your insurance would reimburse you for the value $5,000 leaving you $3,500 in the whole for a car you don’t even have anymore! If you have gap insurance it will cover the extra $3,500.
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