Drivers: Do you have enough liability insurance?


Do you know how much liability coverage you have you have in your auto insurance policy? Many people don’t have nearly the amount they need, electing to purchase only the minimum amount required by the state they live in. That could be far from enough to protect you and your family from financial disaster if you’re found to be at fault in an accident.

Auto insurance policies include two basic types of liability coverage — property damage and bodily injury liability. Property damage liability is designed to cover damage you cause to another person’s property — not yours.

Bodily injury liability coverage is designed to protect you in the event you cause an accident that results in the injury or death of another person. Each state has its own minimum requirements stated in a three-part formula. For example, 15/30/10 means coverage of up to $15,000 for each person injured in an accident, up to a maximum of $30,000 for the entire accident, and $10,000 worth of coverage for property damage.

The problem: Depending on the severity of the accident and associated injuries, your financial responsibility can quickly add up to several hundred thousand dollars or more. Even if you don’t have enough liability coverage to pay for the other person’s medical care and to repair or replace their vehicle, you’re still liable and may be ordered to pay for that person’s pain and suffering and loss of income if they file a lawsuit against you.

It’s important to remember that liability coverage does not cover your medical bills or damage to your property. You’ll want to consider collision, comprehensive and medical coverage for that.

How much liability coverage should you carry? It depends on your individual circumstances. We are happy to meet with you and review your auto insurance policy to make sure it provides the protection you and your family need. The good news: The cost to increase your liability coverage is less than you think!

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Headquartered in Rochester Hills, Mich., Allied Insurance Managers is one of the largest, privately-owned, independent insurance agencies in Michigan.