Liability insurance is what protects you when you cause damage to another person.  If you hit someone else’s car, your liability insurance pays to fix it.  If someone is injured in an accident that you caused, then liability insurance pays for their medical bills.

But how do you know the amount of coverage you need?  And what happens if you don’t have enough?  Here’s what you need to know:

There is a minimal amount of liability coverage that is required by the state in order to drive a vehicle.  But here’s the thing to keep in mind.  If you cause damage that exceeds that amount of liability coverage you have, then you’ll be responsible for the difference.   And if you can’t pay it, there could be a lawsuit in your future.

If you own your home or have additional assets, then you need more than the minimum amount of liability coverage.  Here are some other risk factors.

Rental Property: If you own rental property, you need extra liability coverage.  If someone is injured on your property, then you could be held responsible.  Even a small dog bite could cause a problem if you’re not insured properly.

Teen or College Drivers:  If you have young drivers, you’ll want to have additional liability coverage, even if they are not on your auto policy right now.  Your college student may have their own coverage and live away from home, but if you’re still responsible for them and financially support them, you could be responsible for accidents that they cause. 

Watercraft.  If you own a boat, jet ski, or other watercraft, then you’ll want more liability coverage.  Boat expenses and injuries can add up quickly and you’ll want to have plenty of protection in place.   

The best way to determine the amount of liability coverage you need?  Work with a local agent who can identify all of your risk factors and explain each coverage fully.  You can’t get that from a 1-800 number!  Call us today to review your policy and get a quote.