Liability coverage is an important part of auto insurance that can often be overlooked. While most states mandate liability insurance, the amount of coverage is left up to you. The amount of coverage you need is entirely dependent on your own assets and depends on your financial situation. Read on to discover what liability auto insurance is and how much coverage you should be getting.
What is Liability Auto Insurance?
Liability auto insurance covers damage or injuries that you may cause to others in an accident. It’s important that you protect yourself so that you don’t lose everything in a lawsuit in case the unthinkable happens.
There are two types of liability auto insurance and you should make sure you are informed enough to make a financial decision on each one.
Bodily injury liability insurance covers medical expenses and wages that might be lost by someone you injure. This can include bills for hospital stays, surgery, medication, physical therapy for recovery and a number of other things. This can apply to drivers, passengers, or pedestrians that might be injured in a crash.
Property damage liability insurance covers damage to other vehicles in a crash. It can also cover damage to other property such as homes, government buildings and installations, and more.
When you have both of these coverage types, they will pay if you are sued but only up to the limit that is covered in your policy. Since you have to pay anything over the limit, it’s important that you set the right limits. If liability insurance limits are too low, you could be in serious financial trouble if you are sued for an accident.
Other Types of Liability Insurance
There are several other types of liability insurance including personal injury protection, medical payments coverage, and uninsured motorist coverage. It can be difficult to sort through all the different types and pick a plan that’s best for you. An insurance brokerage can help you sort through all the different types of plans and coverage options and find a plan that will work within your budget and protect your assets.
Another option for coverage is to purchase an umbrella coverage policy. This policy would cover any excess liability that you are on the hook for, over the limits of your regular auto liability insurance. An insurance broker can help you decide if umbrella coverage is right for you and help you find the best deal on it.
Every individual is different, so it’s important speak with an insurance broker to find out what type of policy is best for your needs and financial situation. The experts at Frontlight Insurance have decades of experience helping customers find the right liability auto insurance policy and can help you get started.
Frontlight is a one-stop shop insurance brokerage offering sophisticated council and advice grounded in an analytical approach. We place the needs of our clients above all else and make sure we get you the best deals and coverage possible. We cover the full range of services from auto, personal, commercial, and property insurance to risk management, employee benefits, and consulting. Give the experts at Frontlight Insurance a call today at 310-684-5799 and find out how we can help solve your risk and insurance challenges by getting an insurance quote.