So many people do not even have an idea when asked this question.  But it is very important that you know the answers to these questions if you ever have to use your insurance.  Liability is the protection you have in case you are at fault for an auto accident and do damage to someone else’s property or their person.  Injuries from auto accidents can get costly in a hurry, even from minor accidents.  You need to make sure that your coverage won’t leave you wondering if you have enough in the event of an at fault accident.

Your insurance agent can help you in determining the coverage needed based on your situation.  Everyone is different and has different coverage needs.  If you are a homeowner and you are worried about protecting your assets, you need to consider higher levels of liability.  However, if you are single with not a lot of assets and you just want to make sure you have coverage, then perhaps lower levels of liability are the answer.  One thing is certain, and that is you don’t want to just maintain the minimum coverage.  If you carry the state minimum liability protection, you are in danger of being exposed to not having enough insurance.

This is why it is so important  to not just pick these coverages on your own.  Rely on your insurance agent to help guide you and explain where you need to protect yourself.  If you are in the Virginia area, and need an agent to help you with this, contact us at TheInsurancesmith.com.

Liability Insurance coverage is required by most states.  It protects you in an accident in which you are at fault.  It is broken down into protection for personal injury to others and property damage.

Coverage is usually listed by three numbers, such as 250/500/250.  This is called split limits coverage, and refers to the amount paid out for each single accident.   It is broken down as follows:

·         Up to $250,000 to cover bodily injury to another individual

·         Up to $500,000 to cover bodily injury for all people in the accident

·         Up to $250,000 to cover property damage.  This includes autos and other property.

25 years ago 100/300/100 was considered the standard coverage that most people obtained.  It is amazing to me that many people today are still only getting this amount of liability coverage!  The cost of medical expenses and lawsuits has increased dramatically in the past 25 years.    Even a young adult with few assets can have wages garnished and their life ruined.  Don’t skimp on this coverage just to save a few dollars.

Also consider for a moment the property liability to which you will expose yourself, if you cause a multi-car accident.  The property damage alone for two or three cars might easily amount to more than $100,000.  If a semi-truck and trailer is involved in the accident, the property damage total will be enormous.  You will find that increasing the amount of property liability protection is very inexpensive.  Going from $100,000 to $250,000 will cost very little, maybe only $10-$20 per year, but it is well worth it!

In my opinion, a good insurance agent will not recommend any less than 100/300/200.  He or she should have your best interests at heart and not only be interested in selling another policy.  Don’t be afraid to ask questions if you are not clear about her recommendations.