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Tuesday, July 7, 2009
Do You Have Enough Liability Insurance?
Most of us prefer not to think of the danger involved when driving an automobile. After all, driving a car is the most common form of transportation in the United States. Most of us have to drive considerable distances each day to work, school, and everyday errands.
Although driving is so commonplace in our society today, that doesn't eliminate the danger involved. Traveling at high speeds on a highway can and often does lead to serious accidents. While it's best to avoid these situations if at all possible, it's important to be protected financially in case you cause an accident.
The insurance necessary for this type of scenario is called liability insurance. This is usually the minimum insurance required by your state, because it covers any injuries or damage to a vehicle that you might cause. (There are other types of insurance that also cover you if you are injured by an uninsured driver or if your car is stolen, but we won't get into those for now.)
You're probably already familiar with this type of insurance, but do you have enough?
A typical liability insurance policy covers you for about $100,000. Believe it or not, this amount is quite low and may not cover you in the event of a serious accident. Let's imagine that you cause an accident, and the other driver is seriously injured.
When you think of the incredible cost of healthcare nowadays, it is not difficult to imagine that this driver might be stuck in the hospital for a couple of weeks and accumulate a huge pile of medical bills. And of course, you would be responsible for the pile.
Believe it or not, much of this depends on who you actually hit. If a driver has to undergo some sort of physical therapy and is unable to work for some time, you may have to make up for his lost wages. The higher the wages, the more you're responsible for. Then there is pain and suffering which is a real consideration in a serious accident.
It's best to be prepared for this kind of event, even though we hope it never happens. You should always practice safe driving in order to prevent accidents from happening. But a wise person would be prepared just in case. When you consider that you can increase your liability insurance for just a slightly higher annual fee, why take the risk of not having enough insurance?
Although driving is so commonplace in our society today, that doesn't eliminate the danger involved. Traveling at high speeds on a highway can and often does lead to serious accidents. While it's best to avoid these situations if at all possible, it's important to be protected financially in case you cause an accident.
The insurance necessary for this type of scenario is called liability insurance. This is usually the minimum insurance required by your state, because it covers any injuries or damage to a vehicle that you might cause. (There are other types of insurance that also cover you if you are injured by an uninsured driver or if your car is stolen, but we won't get into those for now.)
You're probably already familiar with this type of insurance, but do you have enough?
A typical liability insurance policy covers you for about $100,000. Believe it or not, this amount is quite low and may not cover you in the event of a serious accident. Let's imagine that you cause an accident, and the other driver is seriously injured.
When you think of the incredible cost of healthcare nowadays, it is not difficult to imagine that this driver might be stuck in the hospital for a couple of weeks and accumulate a huge pile of medical bills. And of course, you would be responsible for the pile.
Believe it or not, much of this depends on who you actually hit. If a driver has to undergo some sort of physical therapy and is unable to work for some time, you may have to make up for his lost wages. The higher the wages, the more you're responsible for. Then there is pain and suffering which is a real consideration in a serious accident.
It's best to be prepared for this kind of event, even though we hope it never happens. You should always practice safe driving in order to prevent accidents from happening. But a wise person would be prepared just in case. When you consider that you can increase your liability insurance for just a slightly higher annual fee, why take the risk of not having enough insurance?
# posted by gopi @ 6:25 AM 
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