Our team here at RSS is often asked, “What auto liability limits should I have?” and “What is auto liability insurance and what does it protect me from?” Auto insurance can often be confusing, and it is extremely important to make sure you have the proper auto liability coverage limits in place.
Liability insurance for your car can help protect you from losing everything in the event you are sued for causing a car accident. It’s also the type of coverage most states require all car owners to purchase. Colorado requires all vehicle owners to carry liability limits of 25/50/15 (we will get to what these numbers mean in a little bit). It’s important to note that just because a person carries the minimum amount of insurance required by their state doesn’t mean they are fully protected in the event of an auto accident.
“State requirements aren’t coverage recommendations, just the minimum needed to drive legally in each state. Injuries and damage from a car accident can easily cost far more than the required minimum limits.”
How much auto liability insurance a person needs depends on the value of their assets, or what their combined savings and property are worth. The amount of liability insurance needed is highly dependent on your financial situation, so it’s important to be cautious of generic liability coverage recommendations you might come across. Never purchase lower liability limits to reduce the cost of your auto insurance because in the event of an accident, you will not have proper coverage to protect you and your assets.
“The more you own, the more liability insurance you should have.”
What do the liability coverage limits you see on your auto policy mean?
**We are using the coverage limits of 100/300/50 in this example because these limits are commonly used in auto policies.
- $100,000 is allotted for injuries per person.
- $300,000 is allotted for injuries total, per accident.
- $50,000 is allotted for property damage per accident
If you have any questions or would like one of our insurance advisors to take a look at your current auto policy, please contact our office. We would love the opportunity to take a look at your coverage and make sure you have the proper auto liability limits in place.