How Much Coverage Is on Liability Auto Insurance?
Liability auto insurance is compulsory in all but one state, which makes understanding liability coverage both important and necessary. While requirements by states and coverage offerings by insurance companies vary significantly, there are minimums in each location that increase by increments of thousands of dollars. Deciding what liability auto insurance coverage is right for you means understanding several factors.
Other People Are Reading
-
Definition and Importance
-
Liability coverage in automobile insurance policies covers you in the event of an accident for any costs incurred by property damage and injuries to you, your passengers or people in the other vehicles. Liability coverage is often expressed in a 25/50/25 format, meaning the policy offers $25,000 coverage per injured individual in the accident for a total of $50,000 coverage for all injured individuals and $25,000 coverage for any property damage.
State Requirements
-
Different states require different levels of liability coverage. For example, California requires both bodily injury and personal liability coverage at a minimum of 25/50/25. Arizona only requires 15/30/10 liability coverage, one of the lowest state minimums. Arkansas has much higher liability coverage requirements at 50/100/25.
-
Insurance Offerings
-
Each insurance company offers differing levels of liability coverage. They must offer the minimum coverage requirement for the state the insurance is being purchased in. Then, coverage increases for each coverage category by $5,000 to $25,000 increments depending on the company. For example, in California you can purchase the minimum liability coverage policy of 25/50/25 or increase it to a 50/100/50, 75/150/75 or even a 100/200/100 liability coverage policy with Wawanesa Insurance. In Connecticut, where the minimum liability coverage is 20/40/10, you may opt for the minimum, a 30/50/20 or a 50/70/40 liability coverage option with GEICO, a national insurance policy provider.
Deciding Upon Your Coverage
-
While you must purchase a liability coverage insurance policy that meets the requirement of the state in which you live, it is usually wise to increase your coverage. Affordability can be an issue since rates depend on a variety of factors, including insurance company, your driving history, your credit rating, the zip code in which you live as well as the zip code of your workplace. However, you should get the highest coverage you can comfortably afford as it prevents lawsuits that may result in liquidating your assets to pay for hospital bills and property damage in the case of an at-fault automobile accident.
-
