Liability insurance covers injuries to other people, damage to their vehicle or property, and legal defense costs if you are sued. What it does not cover is damage to your own vehicle unless you carry collision coverage, your own medical bills without additional protection, or losses that exceed your policy limits. In many states, minimum limits look something like $25,000 for bodily injury per person, $50,000 per accident, and $15,000 to $25,000 for property damage. While those numbers may sound reasonable, they can be quickly exhausted in today’s world.
Medical costs alone can exceed $25,000 with a single emergency room visit, especially if multiple people are injured. Vehicle repair and replacement costs have also risen dramatically, with many cars now valued well above $40,000. If you were to total a newer SUV or luxury vehicle, minimum property damage limits may not be enough to cover the loss. When damages exceed your coverage limits, you are personally responsible for the remaining amount, which could put your income, savings, and assets at risk. In serious cases, injured parties may pursue bank accounts, property equity, or future wages.
The encouraging news is that increasing your liability limits often costs far less than people assume. Moving from minimum coverage to higher limits such as 100/300/100 or even 250/500/250 can significantly strengthen your financial protection without dramatically increasing your premium. Many individuals and families also choose to add an umbrella policy for an additional layer of protection.
Insurance should be more than a way to meet legal requirements. It should provide meaningful protection and peace of mind. Reviewing your coverage periodically ensures that your policy aligns with your assets, income, and stage of life. A brief policy review today could prevent significant financial stress tomorrow.
If you are unsure whether your current limits truly protect you, now is the perfect time to find out. Contact Ability Insurance Agency today for a complimentary coverage review and let us help you make sure your protection matches your life.
