When thinking about Liability, it is best to determine what you are protecting. Someone who has a 10-year-old car, limited possessions and rents an apartment has very little that can be won in a lawsuit. Someone with a house, two new cars, expensive furniture and clothing, lots of “toys” and a half a million in the bank, well, they have a lot to lose if they were to get sued.
Here’s how the courts have ruled in the past, almost 100% of the time. If you carry a liability limit that is greater than what you could stand to lose, then that is reasonable and any awards will be limited to just your insurance limit. In other words, you keep the house and car and money in the bank, even if someone sues you for 10 Million and wins the lawsuit.
Nothing is set in stone and no one can predict the future, but this is the best way to protect everything you have and will be working hard for in the future. Also adding higher limits of liability is generally very inexpensive to do, and in some scenarios could even LOWER your premium.
Call us and we’ll go over the liability limits on your automobile insurance to be sure you have peace of mind every time you get into your car.
Matt Briggs Account Manager