907 W Main St
League City, TX 77573

Importance of Auto Liability Limits!

Importance of Auto Liability Limits!

In the State of Texas, your auto limits, typically listed as 250/500, 500/500, or essentailly listed in the same format, are probably the most important coverage on your auto policy! The first number indicates bodily injury per person, and the second number indicates bodily injury per accident. So, using the first set of numbers, the 250/500 really means $250,000 of coverage per person, and second number is the maximum $500,000 per accident. 

Let me help you understand why they are so important! This coverage is designed to protect your net worth. If this coverage does not cover your net worth, you may be in danger of losing your assets, in the event of a lawsuit arising from an auto accident. And we also know that lawsuits are occur frequently in an auto accident! 

Let me walk you through an example. Your current auto insurance policy has 30/60 limits. If you are driving down the road while on your phone, you may not be paying full attention to the stop sign in front of you. You accidentally run that stop sign. You strike a woman crossing the street at that friendly neighborhood intersection, causing her to break her ankle. This woman also happens to be in outside sales, which means that she is always meeting clients or prospects in person. Well, as a result of the accident, she is no longer able to perform this function, and must be reassigned to working in a call center. She has lost wages, lost future wages, medical bills, pain and suffering, and she is no longer able to walk her dog among other things! Sounds like a stretch, but this is exactly what an attorney may tell the jury for a court verdict! The jury awards a verdict of $1,200,000 to the injured party! 

Well, in this example, the insurance carrier listed on your policy will pay the $30,000 limit and attorney costs! The rest? Well, at that point, your assets can be lost. All of your hard earnings jeapordized! Now, do you see why limits are important?

Please have the net worth talk with your Insurance Agent. It is always better to be safe than sorry! I you have any questions, please call us!