How much liability coverage do you need?
Here are 5 considerations to help you figure it out:
These five considerations will help you figure out what you can potentially lose should you be found liable for a loss you’ve caused.
Definition of Liability – the state of being responsible for something, especially by law (google) or Something A person or company owes, usually a sum of money (Investopedia).
Typical forms of liability coverage for an individual will be found in your Auto Policy (for damages caused by you while operating a motor vehicle), your Home or Renters insurance (damages caused by you or your family members to other people) and an Umbrella Policy (provides liability coverage above your standard Home and Auto Policies).
Most people incorrectly assume they’re safe for purchasing state minimum Auto Liability coverage; however, ask yourself: Is your vehicle value higher than state minimums and how many vehicles do you see on a typical drive that are above that limit? Now consider this; by purchasing the Arkansas state minimum coverage of $25,000, you’re essentially declaring that you’re prepared to cover the difference out of pocket from one or more of the above sources/assets.
What would protecting those considerations be worth to you?
** Also consider underinsured coverage if your vehicle is valued over the state minimum…
*** Don’t forget uninsured coverage as well.
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