| "I want to thank your agency, and especially you for your professionalism. In the years we have been clients, all of our business has been not only straight forward and expedient, but pleasurable. We get all the information we need in an easy to understand way. Your suggestions are always welcome, and have created better protection for us. My wife and I thank you. " | ||
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| "I recently signed up for new auto, homeowners and umbrella policies with Shepard Insurance. They offered the most competitive rates while at the same time supplying the best customer service I’ve ever received." | ||
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We all know California law requires drivers to purchase automobile insurance. But have you ever considered what you're buying, and why? Understanding your auto insurance coverages is important so you can be sure you have the right coverage, and the right amount of coverage. Today we'll talk about Liability Coverage, and in future issues of the newsletter, we'll look at the other components of your auto insurance policy.
Liability Coverage is a required coverage in California and it has nothing to do with you or your vehicle. If you are at fault in an accident, it will pay for the bodily injury and property damage expenses caused to others in the accident, as well as any legal bills you incur. Bodily Injury Liability Coverage pays for medical bills and lost wages. Property Damage Coverage pays for the repair or replacement of items damaged other than your own car. The party you hit may also decide to sue you to collect “pain and suffering” damages.
If you’re interested in protecting yourself from a lawsuit, then it makes sense to buy more Liability Coverage than what’s required. The liability limits on your policy may be presented as a series of three numbers. For example, we might say that your policy carries liability limits of 100/300/100. This represents $100,000 for Bodily Injury Coverage per person, $300,000 in Bodily Injury Coverage per accident and $100,000 Property Damage Coverage per accident. Some companies offer combined single limits, where your bodily injury and property damage limits are included in one aggregate limit, with no sublimit per person.
If you cause a serious accident, your current insurance may not cover you adequately if your limits are low or at the minimum. If you own a home or have other assets or a savings account, you should consider more liability insurance because drivers are allowed to sue other drivers. And if your insurance does not offer enough coverage and doesn’t pay for all the damages, your personal finances are on the hook. It’s possible that you could become a target.
If you're not sure whether you have adequate liability coverage, we can review your policy and make recommendations appropriate to your situation. Call us at either office - Valencia, (661) 295-4624, or North Hollywood, (818) 508-9925 and we'll be glad to see where you stand.
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