As we enter a new year, it is the perfect opportunity to take stock of the various categories of auto insurance coverage available and to review our own coverage to determine whether it satisfies our needs for the following year. Far too often we find that our clients who have been seriously injured in a motor vehicle collision are deprived of just compensation due to a lack of coverage. Over the next few newsletters, we will discuss the various categories of auto insurance.
In this article, we will be addressing liability coverage. Liability coverage protects you and your assets when you are at fault for causing a motor vehicle collision. Every state requires a minimum amount of liability coverage; though, this minimum amount is typically only sufficient to cover minor bodily injury. In the event of a more serious injury, such as a broken bone, a traumatic brain injury, a permanent injury, or even death, the likely recovery for the victim could amount to hundreds of thousands of dollars, or even millions of dollars. Any judgment in excess of your policy limits would be your obligation to satisfy. This could expose you to garnished wages and liens on your property, and could even require you to file bankruptcy proceedings.
Even then the maximum amount of auto coverage may still be insufficient. You can also purchase umbrella coverage which to would cover any claim against you with a value in excess of your auto liability coverage. Umbrella coverage is relatively inexpensive compared to other types of insurance, but it does require that you purchase the maximum amount of auto liability coverage.
The bottom line is that it is smart to protect yourself, in the event that you cause an accident. If you have any questions about your insurance, please do not hesitate to call us for a free insurance evaluation.