How much auto liability insurance is enough?

Are you wondering if you have enough coverage on your auto liability insurance? Do you question how much you should have? Do you think you may have too much? Of course there is no “one size fits all” answer to these questions but most experts would tell you to purchase as much liability insurance as you can get….meaning however much the insurance company is willing to sell you.

You see, unlike physical damage you may cause to your own car or another persons car in an accident, liability for bodily injury or death can really be a massive amount of money. If we assume the average car is around $30,000 to replace, how much does it cost to replace a life? Totaling a car for $30,000 is a bad day, severely injuring or killing someone whose life is priceless is a bad life. The value of a human life is said to be $7 million to $9 million dollars.

In the state of Arizona motorists are required to carry liability limits of just $15/$30/$10. This provides the liable party $15,000 per person for bodily injury or death, $30,000 aggregate limit for bodily injury or death and $10,000 for property damage. If this is what one carries as their liability limit, these are the maximum limits the insurance company will pay. Clearly, these limits are far to low and in my opinion the state should require much more.

The cost to increase liability insurance is relatively low considering the overall premium of the policy and considering the protection it provides. We recommend not purchasing limits lower than $100/$300/$100 and more ideally would be $250/$500/$100. The former would give you $100,000 per person and $300,000 per accident for bodily injury with $100,000 property damage and the later gives you $250,000 per person and $500,000 per accident for bodily injury or death with $100,000 property damage. These limits give you far greater protection than what the state requires and won’t cost as much as you may think to increase to those limits. It is also a good idea to add at least a $1 million excess liability policy as well. We talk about that in another blog https://insuranceproaz.comthe-value-of-an-excess-liability-umbrella-should-you-fork-over-the-money-for-it/

Insurance is something many people dislike paying for, but when they need it, most are forever grateful they had it as it saves them from financial ruin.

Feel free to contact us with any questions regarding your insurance.

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