Many people don’t realize what their liability policy covers on their auto insurance. I have had many people say they want the state minimum coverage without even knowing what that is.
There are three basic components to the liability portion of an auto policy. The medical coverage per person, the medical coverage per accident, and the property damage. These coverages kick in when there is an accident and it is your fault. This covers the other parties medical bills and property. The state minimum limits are $30,000 per person, $60,000 per accident, and $10,000 for property damage.
With the health care costs as high as they are $30,000 could very well not be enough, let alone $60,000 for an accident with multiple people. If there were four people in the vehicle and they all had to be hospitalized, what happens when the $60,000 runs out? They can come after you and your future checks would be garnished until the excess is recovered.
As far as property damage goes, if you hit a 2017 BMW how far is $10,000 going to go? Again they would come after you personally to make up the difference.
I have never written a policy with state minimum limits in my entire insurance career. The amazing thing is to go up to the next tier which is $50,000 per person and $100,000 per accident with $50,000 property coverage is typically just another 5-10 dollars a month. I always recommend $100,000 per person, $300,000 per accident, and $100,000 property damage as that will typically cover most claims.
If you would like to know more or get a quote please email me at firstname.lastname@example.org.