In the state of California, every motorist is required to carry bodily injury and property damage liability. Bodily injury liability provides funds for medical expenses, lost wages and pain and suffering if you are responsible for injuring someone in an auto accident. The minimum coverage amounts under California law are $15,000 for bodily injury per person, $30,000 for bodily injury per accident. Property damage liability provides funds to pay for damages to another motorist's car if you are found liable for an accident. The minimum liability limit for property damage is $5,000.
It is important to realize that these limits are the maximum amount of money your insurer will pay out if you are responsible for an accident, and may not be enough to cover damages for which you are responsible. This is the reason you need to choose the right insurance professional to advise you on what limits you need to make sure your assets are protected in the event of a loss.
If you are in an accident and you are at fault you can be held personally responsible for the costs of medical bills if a person is injured and major monetary awards if a person is killed. These costs can all but ruin most families. It can mean selling your home, selling your stocks and bonds, or selling other assets in order to pay the costs. It can also mean years of future payments in the event you cannot pay them all at once. Depending on the amount of the damages, you could spend the rest of your life paying them off.
In addition, depending on the type of car insurance that you have, your vehicle can be repaired or replaced, thus saving you the out of pocket expense of replacing it yourself. The last reason for having the correct amount of car insurance has to do with repair of the other vehicle if you hit someone. As you know, vehicle repairs can be very expensive. If you are shown to be at fault in an accident you may be required to pay for the repairs or the replacement of the vehicle that you hit. Again, this is money that has to come out of your pocket. As an aside to this, you are also responsible for any property damage that you might cause. For example, if you run into a house and cause a wall to collapse, you would be required to make payment for those repairs. One single accident can force you into bankruptcy court if you are not protected by car insurance.
If you or anyone you know have any questions regarding these issues or any other insurance issues, please dont hesitate to contact the Ekno Insurance Agency.
877-472-2517
www.eknoinsurance.com
Good info!
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