The Problems with Minimum Liability Limits on Your Auto Policy

Oftentimes, we hear clients say, “My car is not worth much, so I only carry the state minimum liability limits.” What’s the problem with this thinking?Well, the problem many don’t think about is that you can injure someone just as severely or cause just as much damage if you are driving a $3,000 car or a $30,000 car. Because liability insurance on your auto insurance in Atlanta pays to repair or replace the other driver’s car and medical expenses if you are at fault in an accident, it’s best to have the most coverage you can afford.Think you can’t afford to carry any higher than the minimum limits? You can’t afford to carry minimum limits.Why’s that you ask? In the state of Georgia, the minimum liability limits allowed on auto insurance policies are Bodily Injury Liability of $25,000 per person with $50,000 per occurrence and Property Damage of $25,000 per occurrence.  Again, this money is paid to others on behalf of you causing injury or property damage. You would have to of been living under a rock for the last few years to think that these state minimum limits would be sufficient to cover any accident more than a fender bender!If you do get into an accident and have paid good money just to get the minimum, a judge can still order you to personally repay the victims for their injuries and property damage you caused in excess of your insurance limits. That same judge may even decide to garnish your wages for the next 20 years for that repayment.Don’t want that to happen? Well, we can help you save money: Don’t carry minimum liability limits! A little known fact is that most people that carry higher liability limits on their policies are paying the same premium as those that only carry the minimum legal limits. This is because insurance companies view those people that carry higher limits as being more responsible. Because of this, they get additional discounts and are placed in a better rating tier.Furthermore, in the long term, the person that carries the higher limits could save a lot of money compared to the person who carries minimum limits if ever involved in an accident. There is a much higher likelihood of the insurance policy being sufficient to cover liability damages. This means not having to give a large amount of money out of pocket to cover the cost of a lawsuit or judgment.Does this sound better to you? Then, call Risk & Insurance Consultants today to learn more. Steve English, our Personal Lines Practice Leader, is here to help at 678-384-5490.