Are you thinking about lowering your auto insurance bodily injury liability coverage to save a few bucks on your policy’s premium? Think again. Bodily injury liability coverage pays for claims and lawsuits by people who are injured or die as a result of an auto accident you cause. It compensates others for pain, suffering and economic damages, such as lost wages. In other words, bodily injury liability coverage protects you if you are at fault for a car accident and you are sued or a claim is brought against you.

If you lower your bodily injury liability coverage, you are putting your assets at risk if you cause injury to someone in an auto accident. Many of us are familiar with TV and radio commercials from various auto insurance companies that proclaim they will insure you for less money by providing the state-mandated minimum coverage. You should make an informed decision when choosing your auto insurance coverage. Keep in mind that if you injure or kill someone in an auto accident, a claim could be brought against you and you could be sued in a court of law. Your auto insurance company will defend you but it only is obligated to pay a claim or judgment against you up to the limit of your coverage.

So, for example, if you have only $25,000 in bodily injury liability coverage and you cause an accident and get sued and the injured person gets a judgment against you for $100,000, in some instances your insurance company may only be obligated to pay $25,000. You are still on the hook for the remaining $75,000 on the judgment. Your assets, your wages, and your livelihood are at risk. The way to ensure that this scenario does not happen to you is to purchase the highest amount of bodily injury liability coverage that you can afford.  

When purchasing auto insurance, you need to make an informed decision that takes into consideration many different factors. Cost should not be the only factor that you consider. If you have assets to protect (including income from a job), you should consider all of your auto insurance options and coverages carefully when making your selection. If you have specific questions about your auto insurance coverage, don’t hesitate to call one of Stark & Stark’s many experienced personal injury attorneys for a free consultation. Our attorneys frequently give free seminars for the public on auto insurance topics at libraries and meeting spaces throughout the state. We are a free resource to help you make an informed decision on your auto insurance coverage.