Most states have laws requiring drivers to carry a minimum amount of liability insurance. Higher limits are usually available upon request, yet far too many drivers do not consider such limits necessary, perhaps because they are not required. When deciding whether your liability coverage limits are adequate for your needs, consider the following:
If you are legally liable for any bodily injury resulting from an accident you cause, your liability limits determine the amount insurance will cover. Many people forget that accidents often involve more than one or two people. While your liability may seem sufficient to cover injuries to one or two, consider the cost of injuries to several people. Once insurance is exhausted, you are responsible for the rest.
If you are legally liable for any property damage resulting from an accident you cause, your property damage liability limits determine the most your insurance will cover. More than one car may be involved in the accident you cause. Consider the limit of insurance necessary to pay the cost if several vehicles are damaged, perhaps in a multi-car pile-up during rush hour. Remember, when your insurance is exhausted, you are responsible for the rest.
You never know with whom you will have an accident. In addition to the above, consider that not every accident will involve young, healthy people driving cheap cars. Some people – such as highly compensated professionals – will require far more cost than others for damages to themselves – including loss of those high incomes during healing and rehabilitation – and high repair or replacement costs for their possibly expensive, luxury vehicles.
©2013 Selective Ins. Group, Inc. (Branchville, NJ). "Selective" insurers include Selective Ins. Co. of America, Selective Ins. Co. of New England, Selective Ins. Co. of N.Y., Selective Ins. Co. of South Carolina, Selective Ins. Co. of the Southeast, Selective Way Ins. Co., Selective Cas. Ins. Co, Selective Fire and Cas. Ins. Co and Selective Auto Ins. Co. of N.J. Insurers and products available vary by jurisdiction.