Did you know that if you are involved in an accident in which another person is injured, that you could be personally liable for any damages beyond the auto insurance policy limits? For this reason, you want to make sure you purchase automobile liability insurance with high enough limits to protect your financial future.
Each state regulates the minimum amount of auto insurance necessary for you to own and operate a motor vehicle. However, just because you satisfy the minimum requirement, depending on what that minimum is, you may want to consider obtaining liability insurance with a higher limit. For example, if the minimum limit of liability is $350,000, but you are involved in an accident determined to be your fault in which another party sustains injuries in excess of that amount, you could be personally responsible for that excess amount. You might be surprised at how high settlements and jury verdicts are in injury cases – people injured in car accidents claim all sorts of damages – past and future lost wages, medical expenses, pain and suffering, etc. These amounts add up quickly and could be in excess of $1,000,000. In the event that you only have $350,000 of liability insurance on your auto insurance policy, you could be responsible for the remaining $650,000+. You might think you don’t have that much, but you could lose your entire savings, your home, and you could have your wages garnished so that the injured party would be entitled to a certain percentage of your income until the amount is paid. Therefore, it is important to make sure when shopping for automobile insurance that you obtain a high enough liability limit to protect the financial future of your family. If you are in the market for auto insurance and would like a rate quote, you can get auto insurance quotes at EINSURANCE.com.
When considering the most cost effective ways to protect your family, you should consider whether to purchase an umbrella policy to cover amounts in excess of the required minimum primary automobile liability policy. Rather than purchasing a primary automobile policy with $1,000,000 in coverage, you can purchase a primary automobile policy with the minimum liability limit required by your state and then purchase a personal umbrella insurance policy which costs less than primary coverage and will apply in excess of your primary automobile liability insurance and homeowners insurance. Purchasing an umbrella policy is a good way to obtain more liability coverage at a lower premium. In the event of an unfortunate accident, you will be glad you did.