Most people who have gotten into accidents after opting for the minimum limit in states like California will tell you that the state auto insurance liability limit is not enough. The state puts minimum liability limits to make sure that everyone has protection but these state limits are usually not enough for most people. This article will elaborate on 4 reasons state auto insurance liability limits are not adequate and information will also be provided on the right limit.
Insufficient Auto Insurance Liability Limits
In states like California when an accident happens the state holds the driver responsible to pay for all the damages that have occurred due to the accident. The driver will not only be liable to pay for the damaged car but he will also be liable to pay for damaged property or death of a person if applicable. By opting for the minimum limit the insurance company will be able to pay for only some of the damages that have occurred but you will be liable to pay for the remaining damages out of your own pocket.
Majority of the auto insurance companies offer additional policies for individual car owners that protects them when an accident occurs. These policies are not mandatory but they are very beneficial. These policies cost $20 – $50 for a $100,000 limit but they ensure that when you are injured you do not have to pay from your pocket. People who do not have a health insurance or people who have a health insurance with a low limit should definitely opt for one of these optional covers.
Comprehensive coverage is not mandatory in some states in USA but this cover is helpful nonetheless. This optional coverage protects your interests when your car has been a victim of vandalism or if your car has been totaled during a natural calamity. This cover not only pays for any repairs but it also pays for replacement of your damaged car.
Uninsured Motorist Cover
Uninsured motorist cover also known as underinsured motorist cover is an optional cover that has protected many people. This helpful cover pays for any damages that occur when you are hit by an uninsured or underinsured motorist. Since there are many motorists in USA that do not have adequate cover if any this policy can prevent you from paying a lot of money on medical bills. This cover is applicable when you are in your own vehicle or if you are walking on the road. This cover also pays for damage to your car and lost wages due to the accident.
Ideal Auto Insurance Limits
The ideal auto insurance limit for bodily injury liability is at least $75,000 but most people set the limit at $100,000. The ideal limit for property damage liability is $100,000 per accident. Since accidents occur without a warning it is always advisable to opt for higher limits even if you are a safe driver. If you drive with passengers in your car then you should definitely opt for a higher limit for bodily injury liability since this cover will ensure that the people injured in your car are compensated. Both the bodily injury liability and the property damage liability pay for an legal expenses in case the other person decides to sue you.