Liability coverage on your auto insurance is the most critical portion of your policy. It is the coverage that pays out if you hurt someone in an accident, or if you cause any damage to property that doesn’t belong to you.
When you consider the cost of medical bills, or the cost of cars on the road today, it’s no wonder why your liability insurance is the one portion of your auto insurance that you do not want to skimp on.
Amazingly enough, your liability coverage is often times the cheapest part of your policy. The cost to double, triple, or quadrupedal your auto liability coverage is nominal. For the same cost as a few Starbucks coffees for you and your friends, you can add ten times the amount of liability coverage to your policy.
When shopping for your auto insurance, be wary of any proposal or quote that offers the state minimum coverage for liability.
California minimum limits are 15/30/5
What this means, is if you are involved in an accident that is your fault, and the other vehicle has three passengers who all have various levels of injuries, you r auto insurance will only pay out $15,000 per person, as a maximum, however the policy will not pay anymore than $30,000 for the entire occurrence.
The number five in this scenario represents the amount of coverage for property damage that you are responsible for causing. With the average cost of a new car above $36,000, it’s is our professional recommendation to carry higher limits of property damage.
Any payout or settlement beyond those numbers will need to come from you personally. These decisions are often made in a court setting when the other party has decided to sue you.
With the high amount of fraud that takes place, it is a scary proposition to gamble with lower limits of coverage.
Because of the low costs, and our belief that you deserve more, at ThriveSure Insurance, we will never offer an auto insurance proposal with inadequate, or state minimums for liability and property damage coverage. – Get a quote for better liability insurance here.
What If I Don’t Have Anything To Sue For?
If you do not have enough liability coverage to cover the loss, then you can and more than likely will be sued.
If you do not have the financial means to settle, then depending on the state you live in, you can have your wages garnished, and/or have judgments placed on you for future earnings.
When it comes to your auto liability insurance, the old saying holds true;
“You don’t have to be a millionaire to be sued like one.