Personal Auto Liability Coverage
What type of personal auto liability limits do you need?
Nearly everyone is familiar with the term “liability coverage”. But what exactly does it mean, and how much coverage do you really need? There are two types of auto liability coverage: bodily injury liability and property damage liability.
Bodily injury liability coverage pays for damages that you cause someone else. It also covers legal expenses. For example, if you (or anyone listed on your policy) have a wreck and it is your fault, bodily injury liability coverage will pay benefits to the injured party. Bodily injury liability coverage is described in a combination of numbers such s 100/300. This means that your coverage pays up to $100,000 per person and $300,000 per accident.
Property damage liability coverage works much the same way except that it covers actual property such as damage to someone else’s vehicle, fences, houses, or other structures your car might hit. It does not cover the cost of damage to your vehicle.
Don’t be fooled by some insurance quotes that quote very low liability limits at cheap prices. Understand this—Liability is the best value in insurance today. Raising your liability limits adds very little cost to your auto premium. In today’s litigious society, State minimum requirements for liability are not enough. That is why Village Insurance will not write an auto policy for less than 100/300, and we really recommend that you have higher limits than that!
In addition, we would highly recommend that you look into purchasing a personal Umbrella policy that would insure you for $1 Million over the limits of your Personal Auto Liability policy. It is very inexpensive and offers great protection for you and your family!