A great automobile or motorcycle policy goes a long way in compensating another driver for medical injuries which may occur as a result of an accident deemed to be your fault.
How does my auto liability insurance protect me and my family?
The Declarations page of your auto or motorcycle policy outlines all of your policy’s coverages as well as your insurance company’s limits of liability. The category entitled Bodily Injury & Property Damage Liability describes a maximum amount per person and a maximum total amount which would be paid per accident. For example: a $100,000/$300,000 policy means a single injured party could potentially receive up to but no more than $100,000 for their injuries—but no more than $300,000 could be recovered by the total number of persons injured in the accident. For example, if two people were severely injured in an accident which was determined to be caused by you, your insurance company would not pay more, in this instance, than $300,000 total for all injuries and/or deaths combined. Considering the high cost of ambulatory, ER care, surgeons, therapeutic and potential long-term rehabilitative expenses, medical bills for two people catastrophically injured could exhaust or even exceed your policy limits of $300,000. Where would injured victims look for compensation after your insurance policy limits were exhausted? Under certain circumstances, plaintiffs involved in litigation might seek reparation in your financial, real or hard assets after your policy runs out. Many learn this lesson the hard way—after the fact.
In the State of Indiana, the minimum amount of liability insurance coverage that will legally put you in the driver’s seat is $25,000. This low-limit legal minimum is barely enough to purchase postage stamps for the many medical bills that can mount up from injuries received in an accident. But lines have to be drawn in legislation and the $25,000 minimum was deemed to be fair and attainable for the greater majority of citizens. However, insurance companies don’t advertise the fact and the majority of citizenry don’t know that the price of coverage per unit goes down as the increase in coverage goes up. In other words, liability insurance is cheaper to buy in quantity.
It’s impossible to predict and prepare for every calamity that could befall you and your family. The next time you review your auto or motorcycle insurance policy, consider how much insurance you need to protect the assets you’ve acquired over your most productive years. Then ask your agent to quote several levels of liability coverage before you make a decision that could potentially expose you to a loss of your assets.
Lawyers Experienced in Cases Involving Bodily Injury
The law firm of Ward & Ward are personal injury lawyers experienced in auto accidents, motorcycle accidents and trucking accidents. Call our firm today! I welcome the opportunity to discuss your potential accident claim and your automobile liability insurance coverage with you.
By Charlie Ward