Today, we delve into a critical aspect of auto insurance: liability coverage. It's the bedrock of insurance, stepping in to cover injuries and property damage when you find yourself at fault in an accident. Liability insurance breaks down into three numbers that signify two vital aspects: bodily injury and property damage. These numbers read as follows: bodily injury per person, bodily injury per accident, and property damage. Now, let's dissect the first part. The first number signifies the maximum payout to an injured individual, while the second number indicates the highest payout per accident. It's essential to note that accidents can involve multiple individuals, and each injured party may have a limit set by your insurance company. Bodily injury encompasses more than just medical expenses. It extends to costs like surgical procedures, lost wages, and even funeral expenses. In Arizona, the state mandates a minimum coverage of $25,000 per person and $50,000 per accident. However, these figures represent the bare minimum and may not fully safeguard your assets in a severe accident. ![]() Moving on to the second component: property damage. This facet covers the expenses associated with repairing or replacing damaged property. This can range from another person's vehicle to structures such as buildings, telephone poles, or even those power box substations we remember from our school bus wait times. Some of these items can cost up to $100,000 to repair or replace. But what happens if your insurance policy falls short in covering your liabilities? The dreaded "lawsuit" enters the picture. You could be contacted by an attorney and become embroiled in a legal battle, facing financial consequences such as "In a wreck, need a check" or "In a crash, need some cash." Moreover, if you're a homeowner, your equity could be at risk, along with potential wage garnishment. The essential lesson here is that the first three numbers on your insurance policy delineate the limits of coverage per person, per accident, and property damage. To ensure robust protection, contemplate increasing these limits. Think about opting for a quarter of a million per person and half a million per accident. You can even add an umbrella policy for additional security. While this level of coverage might come at a slightly higher cost than the minimum requirement, it's far more economical than facing the repercussions of a lawsuit. So, remember, it's all about sound financial planning, and it's all about defense. Shield yourself, your assets, and your future from unforeseen adversities. Get started on a quote today!
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