The Importance of Higher Auto Liability Insurance Limits
When purchasing auto insurance, many drivers opt for just the minimum liability coverage required by their state to keep costs down. However, this penny-wise approach could end up costing you greatly in the long run if you are found legally liable after a serious accident. Here’s why buying higher liability limits is so important:
What is auto liability Insurance?
Liability insurance pays for damage and injuries you cause others when you are at fault in an accident. The minimum liability limits required by most states are extremely low – many states only mandate $25,000 for bodily injury liability per person, $50,000 per accident, and $25,000 for property damage liability.
With the high cost of medical expenses and vehicle repairs today, those minimum limits will likely fall far short of covering significant damages from a major accident. If your insurance maxes out but the other party’s costs exceed your coverage, you would be personally responsible for paying the remaining balance out of your assets.
For example, if you cause an accident that injures several people with big hospital bills and long recovery times, or totals an expensive luxury vehicle, you could be on the hook for tens or even hundreds of thousands of dollars in excess damages not covered by minimum liability limits.
What auto liability limits should I choose?
That’s why it’s essential to purchase higher liability coverage limits that better reflect the realistic costs of serious accidents today. Many insurance experts recommend policy limits of at least:
- $100,000 bodily injury per person
- $300,000 bodily injury per accident
- $100,000 property damage liability
And for added protection, you may want even higher limits of $500,000 or $1 million in liability coverage.
While higher liability limits will increase your annual premium, the added cost is very small relative to the catastrophic out-of-pocket expenses you could face by being underinsured after a major accident. Don’t put your financial security at risk to save a few dollars – make sure your auto liability insurance will fully cover you when you need it most.
ABOUT COVA INSURANCE
COVA Insurance has been meeting the needs of our customers since 2019. As a full-service insurance agency built on the foundation of customer loyalty and trust, our aim is to develop long-term relationships with our clients.
We serve the Hampton Roads Area as well as all of Coastal and Inland Virginia. We hold insurance licenses in Virginia, North & South Carolina, Tennessee, Kentucky, Pennsylvania, Maryland, and Florida.