If you’re involved in a car accident and are deemed responsible, liability insurance prevents you from paying for the damage out of pocket. While having liability coverage is crucial, it’s equally important to purchase the proper amount of coverage. This guide explains how to determine how much coverage you really need, as well as the consequences of not having enough.
How to Calculate the Right Liability Coverage
Even a relatively minor car accident can cause expensive property damage, especially if multiple vehicles are involved. Additionally, if there are any injuries resulting from the accident, you could face exorbitant medical bills well into the future. Fortunately, liability insurance covers both circumstances.
Unlike many other states, Florida doesn’t require drivers to carry a minimum amount of liability insurance. However, that doesn't mean you’re off the hook. It’s recommended that you purchase as much coverage as you can reasonably afford, despite the age of your vehicle or your driving history.
Some recommend having at least $500,000 in coverage for injuries as well as property damage. Even if this figure is out of range, skimping on coverage can cost you more money if you’re involved in an accident.
What Happens When You Don’t Have Enough
Imagine you’re involved in an accident with multiple vehicles and are at fault for what occurred. Once the damage to the other vehicles is all tallied up, the figure amounts to $60,000. However, your per-accident liability coverage is only good for $50,000.
You are now legally responsible for the remaining $10,000 owed to the other drivers. If you’re unable to cover these costs, you will be subject to a lawsuit. This will increase expenses even further since you’ll be responsible for court fees as well as costs to hire an attorney.
If you’re still not sure about how much liability insurance you should purchase, it’s time to consult with an insurance provider. Located in Boca Raton, FL, Seeman Holtz proudly provides clients all over the nation with trusted insurance guidance. These risk management professionals can help you determine the best possible amount of liability insurance to keep you protected. They can also recommend an umbrella policy, which helps fill the gaps in your existing coverage. Visit their website for more information on the full range of insurance services. You can also call (800) 991-3592 to get started on your quote.