Liability coverage is a portion of your automobile insurance policy, which covers you in the event that you are the one who causes a motor vehicle accident. So, if you cause an accident, which leads to the other person sustaining injuries and they file a claim against you, this is the portion of your coverage that will assist in paying for the damages and injuries caused.
The question is: would your liability coverage adequately cover you in such a case? Maybe…but then again, maybe not.
What if you have $35,000 liability coverage, and the accident you caused leads to life-altering injuries? Clearly, $35,000 will not cover all of the costs. So what happens in that event? Can the injured party come after your personal assets? The short answer is: YES, and in most cases, you have to assume they will.
That is why it is so important to be prepared and to spend the extra few dollars (liability insurance is relatively inexpensive) and get additional coverage. If you have questions regarding what coverage you do and don’t have, or should and shouldn’t have in your insurance policy, please call me. I’d be happy to meet with you, free of charge here in my firm’s Lawrenceville, New Jersey office, to review your policy with you in order to ensure that you and your loved ones are covered in the event of an accident.