Auto Insurance Limit

An auto insurance limit refers to the maximum amount of liability coverage (the insurance coverage that covers other people involved in an accident) your insurance company will provide.
Most states have a minimum liability insurance requirements, but this minimum coverage is often not enough. For instance, the state of Florida requires $30,000 injury liability coverage and only $10,000 property damage liability coverage, but this will cover only a fraction of medical and repair expenses accrued in a serious - or even fatal - automobile accident.
For this reason, many people choose to purchase significantly more liability insurance than the minimum required.

 

Purchasing Higher Car Insurance Limits

Auto insurance limits vary by company, but the majority of policies have a limit of $300,000 to $500,000 per accident. The higher the amount of liability coverage you have, the higher your premium will be; however, you will also be better protected if involved in an accident where persons are severely injured or killed, or another person’s property is significantly damaged.

Of course, if the premium seems too high, you can always shop around and compare insurance quotes from other carriers. You might be able to get a lower rate even if you are increasing the amount of liability coverage.

 

Understanding Umbrella Policies

If you have more than $100,000 in assets, consider purchasing an umbrella policy. The function of an umbrella policy is to cover all expenses not covered by your preexisting insurance policy.

For example, if you are involved in accident that results in $500,000 in medical bills, but your standard policy only covers $100,000, an umbrella policy will cover the remaining $400,000. An umbrella policy might be less expensive than simply purchasing more liability insurance, but many companies require you to purchase a certain amount of coverage prior to becoming eligible for an umbrella policy.

 

Hiring an Auto Insurance Attorney

Avoiding a lawsuit is the primary reason for purchasing additional liability insurance. If you are currently facing a lawsuit for personal injury or property damage expenses, you can locate an auto insurance attorney online.