Shopping for auto insurance can be stressful as you figure out the type of coverage you need. It’s important to plan for emergencies when assessing your coverage options.
Many people who search for auto liability insurance are trying to find policies with the lowest premiums. However, purchasing a policy with a minimum amount of coverage leaves you exposed. One serious accident could cost you all of your financial savings.
Exploring Auto Limits
Auto liability insurance coverage pays for any bodily injury or property damage that you cause in an accident. Check your insurance policy for three numbers regarding your auto limits. The three numbers in your auto limit represent the amount that your insurer will pay for the damages you caused in an auto accident. The auto limit contains bodily injury coverage, property damage coverage, and maximum coverage. Bodily injury coverage sets a monetary amount of how much you’ll be covered if someone sustains an injury in the accident. Property damage outlines how much your insurer will pay to cover property damage that you caused. Maximum coverage looks at the total amount your insurer will cover if you cause serious damage in an accident.
Raising Your Limits
If your auto liability limits are low, you may be forced to cover potential damages out of pocket. You are financially responsible for any damages that exceed your policy limit. You should carry enough liability insurance to protect your assets if you are ruled at fault for an accident. That’s why it would benefit you to increase the liability limits on your auto insurance policy.
Other Situations to Consider
Imagine that you have a teen driver. Teaching your child how to drive can be a stressful experience. Research shows that teen drivers are likely to cause an accident due to their inexperience. Increasing your liability limits can protect your child while they are on the road. Simply adding other drivers to your policy increase the likelihood of something going wrong. If you have multiple drivers on your policy, consider increasing your auto liability limit.
Perhaps you carpool to reduce energy. If you are involved in an accident on your way to work or school, you are responsible for the injuries sustained by any passengers in the vehicle. You are also at risk if you drive a large vehicle. Operating a truck or SUV increases the total damage or the severity of an injury if you are involved in an accident. These are all instances where you could lose some of your assets if you don’t have enough auto liability insurance.
The Benefits of Personal Umbrella Policies
Personal umbrella policies add an extra layer of protection to help you avoid losing everything. You can rely on umbrella insurance to cover you after you have reached the liability limits on your traditional coverage. For example, imagine you cause a multi-car pile-up with many severe injuries. In such a situation, the umbrella policy will cover any gaps and pay for expenses beyond your basic auto insurance policy. Also, keep in mind that adding umbrella insurance is relatively inexpensive. Personal umbrella policies can protect you when you need them most.
Raising your auto liability insurance levels gives you peace of mind if an emergency happens. If you have questions about raising your policy’s limits, contact the experts here at Jack Stone Insurance Agency so that we can assist you.