Does Inexpensive Car Insurance Equal Low Liability limits?
Before you try to decide what the right amount of coverage should be. You first need to understand what Automobile Liability Insurance covers. There are always two factors that make up liability coverage. There is bodily injury and property damage liability.
Bodily injury liability covers injuries do to a car accident.
1. First Aid at the Accident
2. Doctor bills due to the accident
3. Money for lost wages
4. Final expenses
5. Lawyer Fees
Property Damage Liability covers the damage that is sustained in an accident:
1. Structural damage to homes, storefronts, etc.
2. Repair or replacement costs for other stationary objects
3. Car restoration or replacement expenses
So, what coverage limit are right for you? Every state compiles there minimum guidelines individually. 15,000/30,000/15,000 is the minimal norm but that may vary from state to state so check your state guidelines. You might have noticed that there are three coverage figures and not two.
It is sometimes cheaper in the long run to get a Personal Liability Insurance Umbrella policy than it is to add more coverage to your existing policy. I have a $1 million dollar personal umbrella which covers me over and above my auto insurance limits. I think I pay $180 a year for it, and it might be more beneficial for you to have that instead of adding a little more coverage to your auto policy. The umbrella covers you for other things like homeowners liability as well.
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