Today’s rate of inflation is increasing the cost of almost everything, including the amount of jury awards and legal costs. That’s why we want to remind you to review your auto insurance policy to make certain your coverage is sufficient to protect you fully. Your coverages may be increased, or additional coverages added, for a small additional premium.
If you should be at fault in an accident, you would want liability limits that are at least as high as any possible court judgment. With medical care costs increasing rapidly, you should evaluate your Bodily Injury Liability limits to make certain they are sufficient.
Since the value of most autos and commercial vehicles easily exceeds the minimum Property Damage Liability limit, this is a very important coverage to carry in an adequate amount.
Perhaps the best value in insurance is the Personal Liability coverage provided by your Homeowners Insurance.
Liability claims are harder to grasp than property claims, after all property is tangible – I can see it, touch it, I know how much I paid for it. Liability claims occur far less frequently but are potentially much, much more costly.
So the question then becomes, “How much liability coverage do I need?” It is a question that unfortunately has no reeady answer. You need a liability coverage limit that will meet or exceed any possible judgement against you. In today’s litigious society, we would say that most people should have a liability coverage limit of at least $500,000.
The personal liability coverage discussed so far has applied to Bodily Injury and Property Damage claims against you. The kinds of claims people make in our modern world are not confined to Bodily Injury and Property Damage, though. It is highly recommended that you add Personal Injury Coverage to your policy. This endorsement expands the definition of liability to include coverage for claims alleging libel, slander, false arrest, malicious prosecution, etc. This coverage also is very reasonably priced.
If you have not done so in a while, check over your policy and make sure that the liability limit is adequate for you and that you have the Personal Injury Coverage endorsement.