HOW MUCH AUTO LIABILITY INSURANCE DO YOU NEED?
By: Vic Lefeve

One of the most often asked questions when a customer is purchasing personal automobile liability insurance is “how much coverage should I buy?” To answer this question, consideration of the following information will help in the evaluation of your particular insurance needs.

If your actions, while operating an automobile, cause sufficient bodily injury or property damage, your insurance policy may not provide adequate coverage for the total cost of the occurrence, and your personal assets may be substantial enough to warrant a direct action against you as well as your insurance company.

To bring this situation into perspective, according to Jury Verdict Research in vehicular accident cases, the average award during a recent five-year period climbed from $75,127 to $315,653.

Do yourself a favor and review your auto liability policy limits with your professional insurance agent. If necessary, ask your agent about a personal catastrophe liability policy. You may be surprised at the relatively low cost of adequately protecting your personal assets with this type of policy.

Victor J. Lefeve, CPCU, CIC, CPIA is President of Employees Insurance Representatives, Inc., a local independent insurance agency.