Liability –Automobile liability insurance is financial protection for a driver who, while operating a vehicle, harms someone else or their property. Automobile liability insurance only covers injuries or damages to third parties and their property.

Example: You’re approaching a red light and slip on black ice and run into the intersection and t-bone a car in their driver’s door. The driver loses part of his arm and sues you in a court of law for $100,000. Your auto insurance company will send their attorney’s to defend you in a court of law. After all is said and done, the driver is awarded $60,000 in damages in which it’s up to you to pay. This is where your liability comes to play.

 

The state minimum is 20/40/10. The 20 means your insurance company will pay up to $20,000 per person if you hurt them in an accident. The 40 stands for $40,000 and is the maximum the insurance carrier will pay out per accident. The 10 is for $10,000 maximum in property damage the insurance will pay out.

 

In this scenario, your insurance carrier would pay out $20,000 and you will have to come up with the remaining $40,000.

 

$60,000    damages awarded victim

$20,000    maximum amount insurance will pay

$40,000    amount you must come up with

 

So you can see that having the state minimum really isn’t enough. We recommend 100,300,100 to be the minimum amount a person should have, and it may only increase your insurance by a little each month. But is well worth it if you hurt someone in an accident. Call us and we can help.

Posted 12:08 PM

Share |


No Comments


Post a Comment
Name
Required
E-Mail
Required (Not Displayed)
Comment
Required


All comments are moderated and stripped of HTML.
Submission Validation
Required
CAPTCHA
Change the CAPTCHA codeSpeak the CAPTCHA code
 
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2019
  • 2018


View Mobile Version
Carrier
Carrier
Carrier
Carrier
Carrier
Carrier
Carrier
Carrier
Carrier
Carrier
Carrier
Carrier
Carrier