Q. How Much Auto Liability Coverage Should You Carry?

   A.  Liability coverage protects your current assets as well as future earnings. If you cause damage to someone in your vehicle, you are responsible for the damages you cause. It’s important to understand that. YOU are responsible, not the insurance company. The insurance company only steps in and pays on your behalf or reimburses the injured party. The insurance company ONLY pays up to the dollar limit of liability you select.

So, how much should you carry? In short, as much as you can reasonably afford. The minimum we recommend is split limit 250/500 limits with an umbrella. This gives you up to 250k per person and 500k per accident, partnered with an umbrella this can give you limits over 1, 2, 5, 10, 20 million in additional liability protection. That may sound like a lot, but consider this. What if you hit a vehicle that has 4 passengers and all are injured? That can go very fast when you are paying for medical expenses, lost wages, pain & suffering, and other reasonable expenses incurred as a result of the accident. Take it one step further, what if there was more than one vehicle with multiple passengers in each?

Accidents are going to happen, and they happen often.  I’m going to ask you to be honest with yourself for a moment. Ask yourself, while driving have you ever texted, read an email, dropped something on the floor and picked it up, accidentally run a red light, hit an ice patch, hydroplaned, driven tired, etc…the point is that most of us (probably all of us) have done one or all of these things at one time or another. Any of those things can cause an accident that can put you in the crosshairs of a lawsuit. It is at that point you find out if you carry enough liability coverage to protect your assets, and future earnings. That’s right future earnings, just because you don’t have the money now, doesn’t mean you won’t be paying for years to come.

So, how much auto insurance should you buy? Buy as much as you can reasonably afford. It’s one of the least expensive coverage’s you can get and the more you get the cheaper it gets. Your assets and future earnings are worth protecting.


For help with this or any of your insurance needs, get in touch with us!