Is Your Automobile Liability Insurance High Enough?

If you are determined to have been at-fault in a car accident, your automobile insurance will pay out a specific amount to the injured party. However, the injured party can sue you for more than this amount. If you lose the case, you will have to personally pay out the difference. In some cases, this can be tens of thousands of dollars. It can be enough to leave you financially bankrupt. This is one reason why it’s important to look at more than just the monthly premium when you’re comparing policies.

How High Should Your Insurance Be?

Determining how high your insurance should be isn’t always easy. Most insurance companies split liability into two areas: bodily injury and property damage. For injury, your minimum coverage may be quite low. Some companies only offer $10,000 per individual involved in the accident. If you’re in a major collision that results in multiple injuries and long-term hospital stays, that will not cover much of the bill. You may be able to select as much as half a million dollars per accident. However, this will increase your monthly premiums.

For property damage, again the minimum amount may not cover much at all. If you have to pay for a new car, you may need to pay $40,000 or more. Even if the repairs are not that much, you still want to be covered. You don’t want to lose your home or other assets simply because you didn’t have high enough auto insurance.

You will need to balance your insurance protection against its cost, of course. However, often making a few small changes doesn’t change your monthly premium by much. Consider what a few dollars a month can do for your overall protection.

Business Auto Insurance

If you own your own business, you also need to make certain your business auto policies are high enough to protect you. Without these high amounts, you may have to use your personal assets to cover the costs. In some cases, you could lose your business and your personal assets.

If you are being sued, you want to have a great legal team on your side. The Gandhi Selim Law Firm is here to help. Contact us today to discuss your case.