What does liability insurance do, and what does it cover?
Liability insurance covers damages done to another person from an accident in which you were at fault. Liability insurance is the one of the most basic types of auto coverage one can purchase, and is actually mandatory in the majority of states in the U.S. The minimum limits, however, vary from state to state. Be sure to know exactly what is covered in liability insurance by calling your agent, and get a better grasp on the concept by reading below.
The Limits of Your Liability Coverage
- Bodily injury liability limit per accident: This sets a limit on the total amount that will be paid for the damages per accident. It’s important to remember to set a high one to cover medical bills if it involves multiple people.
- Bodily injury liability limit per person: If you cause an accident that leaves multiple people injured, there is a maximum that your insurance will pay per person.
- Property damage liability limit: The damage done to an individual will be paid up to a max value from your insurance.
** It’s important to also consider the time the person may have to miss work and the money that must be covered for that!
How much coverage does one need?
It’s always important to remember more than just the requirements of the state. It’s never a bad idea to go above and beyond the necessary amount because if your coverage runs out, and the bills from the other person keep stacking up, you may be required to pay out-of-pocket to cover the costs. A good rule of thumb is to always have enough coverage to cover your assets. If you value your assets at $50,000, then get a policy that covers $50,000.
You deserve to have an auto insurance policy that will go to work for you! To get the right California coverage for your car, contact Lou Aggetta Insurance Services in Pleasant Hill today.