Preferred Insurance

How much liability should I have?

You can never go wrong with having higher limits of protection.  Let’s look at liability a little deeper.  The minimum limits required for auto insurance in California is:

$15,000 bodily injury per person / $30,000 bodily injury per occurrence / $5,000 property damage.

Many people make the mistake of settling for the basic liability limits when purchasing insurance.  Doing this can cause you unforeseen losses down the road.  For example most vehicles on the road cost more than $5,000, so if you have only the minimum limits and hit a vehicle with a value of $15,000 your insurance company will only pay the $5,000 and you will be liable for the difference.  The same example is true for bodily injury.  Bodily injury could easily go over the minimum limits; an ambulance ride can easily cost over $2,000.

Increasing your car insurance limits of liability does not have to be expensive.  In most cases the difference in premium is only a couple of dollars depending on the drivers driving record.  People might assume that if you don’t own your home or have financial assets to protect then going with the minimum is sufficient.  This is not the case because you can be risking lawsuits for the unpaid liabilities.  So the point is ask what the difference will be to raise your limits, your insurance agent will provide the price difference.  Based on that difference you should be able to make a decision if the cost outweighs the benefits.  The more liability the better the protection, in insurance claims the cost can quickly climb so make sure you are adequately protected.


Please feel free to contact us with any questions or to get a rate quote on your insurance.