How Much Auto Liability Insurance Should You Carry?

When it comes to automobile insurance most people know they are required by their state to carry liability insurance on their vehicle. However, many are unaware of the potential risk they are taking by choosing a low liability limit that does not provide the coverage they need.

Bodily injury liability insurance provides you with protection for you and your assets in the event that you cause an auto accident that injures or kills someone involved. In the unfortunate event the other party sues you for injuries sustained in the accident and they win, your liability insurance will pay the damages up to your coverage limits. If you don’t have enough liability insurance to cover damages the courts can seize assets you own.Murphy Auto Insurance

Every state in the US requires drivers to carry bodily injury liability insurance. Often the minimum required by law does not adequately protect you. For example, in Kentucky, the minimum bodily injury liability coverage is $25,000/$50,000/$10,000. This means that the policy must cover at least $25,000 in liability for each person injured and up to $50,000 per accident and $10,000 in property damage.   How many cars on the road today only have a value of $10,000 …not to mention a hospital bill for a major accident that is under $25,000.

Hopefully you never find yourself in this situation. But what happens if you are responsible for causing an accident where three people involved sustain injuries?  You are found liable for the injuries and ordered to pay $75,000 in damages, (which isn’t unreasonable with today’s healthcare costs).  If you only have the minimum liability insurance of $25,000/$50,000 you do not have enough auto liability insurance to cover the damages. Since the most your policy will pay per accident is up to $50,000, you will be responsible for paying the other $25,000. Lets say for example you own a $100,000 home. The court can put a $25,000 lean against it until the debt is paid off.  Not a good scenario, considering bumping your liability up to the next liability level would have only cost you a few extra dollars each month.

The above example confirms why it is so important to have sufficient bodily injury liability car insurance. You should have enough to protect at least the value of your assets. In this scenario the insured should have had at least a minimum of $100,000/$300,000 in auto liability insurance.

How much auto liability insurance should you carry? The answer to this question is simple. You should carry enough to AT LEAST cover the value of your assets. If your liability coverage needs to be bumped up don’t fret. You will usually only be out a hundred or so dollars per year to bring your coverage limits in line with what you need. This will be well worth it in the event the unthinkable happens. You will be surprised at how cheap this extra protection can be ….and balance that with the peace of mind in knowing your covered.

Call us today …we can assist you in determining the suggested coverage amounts and go over what any extra costs might be to add or increase your liability levels.


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