Why do I need high limits? part 2

So why do I need high auto limits? 

I drive an older car and I’m not a Millionaire!

(Part Two)

Personal Auto insurance provides coverage for liability (both property damage & bodily injury).   Pennsylvania requires a minimum limit $15,000/person,  $30,000/accident for bodily injury and $5,000 for property damage, or $35,000 combined limit for both bodily injury and property damage.  So if you have an older car, why would you need to carry higher limits?

If you are responsible for injuries to someone (or several people), their medical bills could easily exceed the minimum limits.  In fact, if the person or persons are injured, they could sue for a large settlement.  We are a very litigious society and juries award large settlements, so even $100,000/per person may not be sufficient.  In addition, the attorney will want 40% of the judgement, so that fee needs to be considered.

So what limit should you chose?  That’s an individual decision…What do you have at risk?  Do you own a home, have saving or investments, earning potential?   Depending on your circumstances, you should consider the highest limit your auto policy offers (usually $500,000).  You should also consider an Excess liability policy which can provide $1 million (or more) over your auto & home insurance!

Imagine you cause an accident and the other car driver and passengers are transported by ambulance or helicopter to the hospital (EXPENSIVE!), and need tests such as X-rays, MRI etc (again EXPENSIVE!) are hospitalized for several days (EXPENSIVE!), need Therapy or Out Patient assistance or visits (EXPENSIVE!)…so do you have enough coverage?

Here at Liberty, we recommend that you ….

·         Consider increasing your liability limit to $500,000/accident for bodily injury and $250,000 property damage

·         Consider adding Excess Liability coverage

Everyone is different and has different needs, so please call us and have a short conversation to make sure your coverage is appropriate for you and your family!