How Much Liability Insurance Do You Need On My Car?

​Every state has its minimum requirements for auto insurance, so check what is required in your area before making any decisions. Generally, most states require drivers to carry at least a minimum liability insurance on their vehicles. Auto insurance coverage will pay for any damages or injuries you may incur in an accident up to the limits specified in the policy.

What is Auto Liability Insurance?
Auto liability insurance is a type of coverage that protects policyholders from financial losses resulting from damages or injuries caused by their vehicle. 

1. Bodily Injury Liability Coverage
   Bodily injury liability coverage covers the costs associated with any physical harm suffered by another person, such as medical bills, lost wages, or pain and suffering damages if you’re found negligent in an auto accident.
   
   
2. Property Damage Liability Coverage
   Auto insurance with property damage liability coverage benefits you the most as it covers the costs associated with any property damage caused by your vehicles, such as repairing or replacing a damaged car, fence, or other structure.

State Liability Requirements
Specific states require greater minimums. Take California, for instance; the liability limits are 15/30/5, while Texas demands 30/60/25. You can opt for higher liability limits to save even more on car insurance. Auto insurance will cover more of the costs associated with an accident, giving you peace of mind in case of a significant collision.

The Costs of Being Underinsured
If you’re in an accident and the damages exceed your policy’s limits, you’ll be forced to pay out-of-pocket for any costs above what your insurance covers.

If you don’t have enough coverage and the other driver sues, you could still be on the hook for the difference. That’s why ensuring you have sufficient liability insurance in case of an accident is essential.

How To Buy A Car Insurance?
When buying car insurance, you should know your coverage needs and limitations. Before signing with a car insurance provider, inquire about potential discounts they may offer. 

At McClain Matthews Insurance, we put our clients first by offering them policies that they can afford. Insurance is a necessity nowadays, and we're here to help you. Learn more about our products and services by calling our agency at (317) 298-7500. You can also request a free quote by CLICKING HERE. Topics and coverage discussed in this article are not guaranteed, consult with your agents to determine what your policy does and does not cover. We are more than happy to help!