Most states require vehicle owners to carry liability insurance. This is a form of auto insurance designed to protect other people on the road. For example, if you make a mistake and cause an accident that damages another person's vehicle or causes injuries to that individual, your liability insurance steps in to provide protection and pays for the losses. Yet, many vehicle owners simply believe that the amount of coverage required by the state is good enough. Is it?
Many states have requirements for drivers to carry up to $50,000 of liability coverage—some much less and some much more. This amount of money does not protect your vehicle, but rather other drivers for losses you've created. Keeping that in mind, consider what would happen in a single accident. A person is hurt, facing weeks in the hospital recovering from broken bones and surgical procedures. This individual's vehicle is totaled and you are found negligent, and the cause of the accident.
In a situation like this, your liability insurance could step in and pay for the costs. However, they only pay up to the amount of coverage you have. In this case, that could be $50,000. However, the medical procedure alone might top this amount. Add to that the amount of damage to the vehicle and pain and suffering and you could find yourself responsible for a significantly higher loss. Keep in mind, you are personally responsible for any loss not covered by your car insurance company in most cases.
With lawsuits costing hundreds of thousands of dollars, and in some cases millions, you may not be able to afford to purchase just the minimum amount of auto insurance. Most drivers today need to select a policy that is significantly higher than the amount required by their state. How much do you need? This depends on many factors, including where you live, how much you drive and the overall risks you present.
It is always best to work closely with your insurance agent to ensure he or she can provide you with a specific, customized quote for auto liability coverage. Every driver needs liability protection, but state requirements may still leave you vulnerable to very costly losses.
We’ll help you find the right coverage. Call La Familia Insurance at (888) 751-7511 for more information on Dallas auto insurance.