How Much Liability do you Need?

Choosing the right auto insurance policy can be very confusing and stressful. With all the different options, it can be difficult to ensure that you are getting the right amount of coverage. Working with an independent insurance agent can make sure that you have the right amount of coverage for all of your needs.

Auto insurance has two types of liability coverage – bodily injury liability and property damage liability. Bodily injury liability will pay an injury claim if you are at fault for an accident, as well as covering the costs to pay for a lawyer if you are sued due to the accident. Property damage liability will cover the cost to repair the damage of another person’s property if it is damaged in an accident that is your fault.

Both bodily injury liability and property damage liability have their own single limit coverage options, which indicates the limits that your insurance policy will cover. These numbers are typically shown as 15/30 or 50/100. The first number indicates the per person liability limits of your coverage. If you have a 50/100 limit, your insurance would cover $50,000 worth of injury payments. The second number is the per accident limit. If you have a 15/30 limit, and there are three people that are injured, your insurance would only cover $30,000 for each person’s injuries.

If you are a homeowner, you should always carry at least 100/300 combined single limit between both the bodily liability and property liability on your auto insurance policy. This will help ensure that you will most likely not have to pay out of pocket for any damage or liability in the event of an accident, which will help keep you financially stable and able to keep your home.

For more information on finding the right auto insurance coverage to meet all of your needs, contact The Insurance Shop in White Bear Lake, Minnesota.