Auto Liability Coverage What You Don’t Know Can Hurt You
Most people would not think about getting behind the wheel of their cars, with no auto insurance coverage. However, there are many drivers in the US today without sufficient liability insurance protection. They believe they are fully covered for most accidents, and one of those unsuspecting drivers could be you.
What is Auto Liability Insurance?
Liability covers auto accident damages in which you (or someone you give permission to drive your car) are at fault. Whether you pull out in front of an oncoming vehicle or your car skids into another vehicle, it’s usually your fault and your insurance covers the damages to the other vehicle, driver, and additional property.
Some states have comparative fault laws. For example, if you are deemed 50 percent at fault, your company pays half and the other driver’s company pays the rest. Percentage amounts vary according to your state of residence.
It’s All About the Numbers
When you check out liability coverage (no matter what state you live in) you’ll see three sets of numbers. Take the state of New York for an example, where the coverage limits are 25/50/10. Here is what the numbers mean:
. 25 – Your policy pays a maximum of $25,000 for one person’s injury.
. 50 – $50,000 total medical payments for one incident.
. 10 – $10,000 for property damage, including vehicle damage, signs, buildings, and utility poles.
Why Minimal Insurance Isn’t Enough
Suppose someone is injured and you (or the person driving your car) is at fault. The hospital bill for a serious injury could easily be $50,000 or more just for one injury. This does not include physical therapy, lost wages, and other expenses.
If for some reason your car totals a new SUV, pickup, luxury car or van, the damages could be more than $50,000. Do you know who makes up the difference if you only have $10,000 in coverage? The at-fault person is responsible and can be sued for the remainder of the damages.
What Can You Do?
If you are you not sure you have enough auto liability coverage, you only have to contact your auto insurance agent. He or she is more than happy to talk to you about your liability insurance needs. Auto liability insurance is not very expensive and you may be surprised just how affordable coverage like 100/300/100 or more, can be. The time to do something about insufficient insurance is now (before you need it).