In order to operate a motor vehicle people are required by law to carry auto insurance. In the event of an accident, the state wants to ensure that any injured parties have means to be indemnified for their losses. At the very minimum, you are at least required to carry liability-only coverage. But what does liability-only really mean? And how much liability coverage should you carry on your policy? There are two basic parts to every auto liability policy: 

Liability for Bodily Injury

The first part of your liability coverage has to do with liability for bodily injury to a third party. If you are involved in an accident in which you are found negligent and injure someone, this is the coverage that would apply. If you are sued, costs for their hospital bills, transportation, surgeries, and legal fees can really add up fast! The average cost of a hospital stay in 2014 was over $10,000, and a serious auto accident could be much more costly. If you do not carry high enough liability limits for bodily injury to cover these costs, you can be personally responsible to pay the additional costs. This is why it is important to carry enough liability to cover your assets. Even then that may sometimes not be enough. You can also get additional liability coverage by purchasing a Personal Umbrella policy. Talk with your insurance agent to help determine the right amount of insurance to carry.

Liability for Property Damage 

The second part of your liability coverage has to do with property damage to a third party. If you are involved in a collision with another automobile, this coverage would pay for their damages. In many states the minimum property damage limit can be as low as $10,000. With the average cost of a vehicle on the road today being over $30,000, you could find yourself in some serious financial trouble by not having enough insurance to cover damages. If you total two vehicles, or hit a house, damages can be much more costly.     

For help getting an affordable car insurance policy, call Consolidated Agency, Inc. of Rochester at (585) 467-4110 or visit their website to find out more. They also offer great rates for home and business insurance, so be sure to ask about bundling your policies for a discount.