People often ask us “How much liability insurance do I need?” Unfortunately, there are no easy answers to this very important question. We have software programs that will estimate the cost to reconstruct a house or the amount of life insurance needed to take care of a family, but there is no magic formula when it comes to protecting yourself from lawsuits.
We think we know how much is NOT enough. Experience tells us that carrying bodily injury liability limits less than $500,000 puts your assets at risk, especially in light of the low additional cost to carry higher limits.
Bodily Injury Liability protects you against lawsuits by others who have been injured in a car accident. Serious injury or death from a car accident is devastating to the injured person or deceased person’s family, both emotionally and financially. Understandably, that person or family may bring a large lawsuit against a driver who causes serious injury. We have real life examples of lawsuits settled for as much as $1.5 million on behalf of our clients.
For additional protection above $500,000, many of our clients have chosen to carry an Umbrella Policy. For as little as $150 to $200 per year, depending on the number of cars, drivers, boats, and other items you have, an umbrella policy can provide an additional $1,000,000 protection over and above your auto and home liability insurance. Umbrella policy limits up to $5,000,000 are available.