Auto liability insurance coverage, which protects you if you damage other people's property or injure other people, is required of all drivers. However, the minimum coverage as prescribed by your state isn't guaranteed to offer full protection in case you are ever deemed guilty of causing an accident. In particular, your state's minimum auto liability coverage is likely to be inadequate in the following situations.
There Are Multiple Teenage Drivers in Your Household
According to the Centers for Disease Control and Prevention, drivers between the ages of 16 and 19 are nearly three times more likely than drivers over the age of 20 to be involved in a crash. The risk increases even further if the teenagers are male and drive with other teen passengers.
Therefore, if you have the demographic in your household, there is a high risk that one of the teenagers will be involved in a crash and be held liable for it. Prepare yourself for that risk by increasing the liability coverage portion of your auto insurance.
Permissive Drivers Have Frequent Use of Your Car
A permissive driver is anybody not listed in your car policy but has your permission to drive your car. Permissive drivers are protected by your insurance; it is your liability coverage that pays for the injuries or damages they may cause while driving your car. Unfortunately, the more people that have access to your car, the higher the risk the car will be involved in an accident. Therefore, if you are generous with your car and frequently loan it out to friends, neighbors, colleagues, and relatives, increase your liability coverage for your own protection.
You Have Assets That Can Be Garnished
If you are ever deemed liable for an accident, and your liability coverage can't settle the judgment, the accident victim can come after your personal assets. For example, they may ask the court to garnish your wages, real estate property, or even money in your bank account.
Therefore, if you have assets that can be garnished, it pays to protect them by increasing your liability coverage. However, the same advice may not apply to, for example, a recent college graduate working part-time jobs and who doesn't have much in terms of assets.
Assess your circumstances and determine how likely you are to call upon your liability coverage for protection. If your limit seems inadequate, talk to an insurance agent like those at Affordable Insurance to help you gauge how much coverage you should add.Share