When it comes to auto insurance liability limits, each state has a mandatory minimum that all drivers must purchase. However, Bradford Hegler – State Farm Agent recommends his clients in Villa Rica, GA, to think about whether these mandatory minimums are sufficient. If you’re involved in an accident with multiple vehicles and drivers, your insurance might fail to cover you, which could leave you paying for the damage.

Different Types of Liability

The first step to deciding on a liability limit is knowing the different types of coverage for car insurance. Property damage liability covers any damage occurring to another person’s property after an accident you’re responsible for. Bodily damage liability limits have two categories: injuries per person and injuries per accident. Whatever your limits are, the insurance company will only pay that amount for property damage or bodily injury.

The Consequences of Insufficient Coverage

If you opt for your state’s mandatory minimum when selecting auto insurance coverage (in Georgia it’s $25,000 per person and $50,000 per accident for bodily injury coverage, and $25,000 per accident for property damage) and you’re subject to a lawsuit, damages can be exorbitant. In some cases, particularly when an auto accident is severe, you could be looking at damages totaling hundreds of thousands—or even a million—dollars. That amount is much higher than most people’s financial capacity, which is why you should consider increasing your limits.

Also, medical procedures, especially when an injury is extensive, are costly. In this case, you are likely to exceed the bodily injury limits in a single accident, which will mean you’re responsible for the remaining out-of-pocket costs. You might also be privy to a discount if you opt for higher limits. Some insurance companies label customers who choose higher limits as more cautious, which means they are lower risk.

Bradford Hegler – State Farm agent and the rest of his team dedicate themselves to providing clients in Carroll County guidance on how to secure the best auto insurance coverage for their needs. To learn more about their other products, including life, property, and business insurance, call (770) 456-4000 or visit the website.