Why You Should Consider Higher Car Insurance Liability Limits in California

If you’re in the market for automobile insurance in California, or are reevaluating your current insurance to be sure your coverage is appropriate, chances are you’ve come across quite a bit of information about liability insurance and liability limits.

While many companies and websites advertise state minimum coverage that saves you money, this may not be your best choice; let’s examine why.

What is Liability Coverage?
To begin with, it’s critical to understand what liability coverage is, and what it covers. While auto liability insurance covers various areas and comes in many forms, bodily injury and property damage coverage are two of the most important.

This means proper liability coverage is meant to cover medical expenses (including but not limited to medical bills, office visits, physical therapy and/or rehab), car repairs or even replacements, damaged buildings, other property and even lost wages and funerals.

To take it one step further, certain vehicle accidents require the services of an attorney. Liability coverage provides assistance in this area as well.

Why Consider Higher Limits for Your Policy?
According to a study by the Federal Highway Administration, the range of medical costs alone for a vehicle accident range from 2,000 to 1.3 million dollars. No one plans for an accident in advance, therefore, they can be devastating without proper coverage, or with the advertised "state minimum."

To determine what liability limit is best for your automobile insurance, it’s best to talk to a licensed insurance agent in your state while taking a look at your assets and what you have to lose. Based on the high potential costs of an accident, having the right coverage is paramount.

Interested in learning more about liability coverage in California? Call Pacific Preferred Insurance Agency today!