Understanding Liability Insurance If you own and operate a vehicle, liability insurance is an important thing to understand. In fact, many states require that vehicle owners have a minimum amount of auto liability insurance, though the minimum amount varies between states. Regardless of state regulations, liability insurance is still something all vehicle owners should have to protect themselves in case they find themselves at fault for an accident. For example, let’s say you end up damaging another person’s car in a parking lot by opening your door. Your auto liability insurance policy would help cover the damage to the other car. Another important aspect of a liability insurance policy is legal defense coverage. For example, maybe you get sued because of something you are found liable for while driving. Your auto liability insurance policy will also help cover the costs of an attorney as well as court fees.
What Are The Minimum Limits? All states have financial responsibility laws that either explicitly or in effect require you to buy and maintain at least some auto liability insurance coverage. Even though coverage requirements are different from state to state, you will typically need to buy some level of liability coverage wherever you live. Other types of auto insurance coverage may be optional or required, depending on the state in which you live. Make sure to check with your state so you understand what the required coverage level is for liability and other types of auto insurance. Most likely, the minimum coverage outlined by each state will not be adequate.
How Much Liability Insurance Should Someone Purchase? If you're involved in a car accident that injures another person or persons, you will most likely be responsible to pay for damages. Depending on the severity of the accident and the damage that is inflicted, the limits of minimum liability coverage could quickly be exhausted. Moderate-to-severe automobile accidents can definitely reach costs of $100,000 or more, depending on the number of cars involved, the number of people who were injured and the severity of those injuries. This amount exceeds the limits that most states require.
If your insurance policy does not cover and pay out the total amount you owe, the injured people can come after you for damages until their bills are paid. Since you were at fault for the accident you might find yourself in a situation where you need legal defense. Without proper coverage, you could be pursued in many ways to collect the payments that are due to your lawyer and any court fees incurred. Make sure to speak with an experienced insurance agent to get advice on where your coverage should be. You don’t want to find yourself in a situation after an accident where you wish you had purchased more coverage. At Campus Insurance in San Jose, we offer all kinds of insurance policies for auto, home and more. We also offer umbrella insurance, providing you with the peace of mind you desire. Give us a call today.