Liability Insurance: 101

By: Woop Blog Group
Friday, March 8, 2024

Liability Insurance… this one is important!

A single instance of inadequate liability coverage could ruin you financially. Talk about not burying the lead!?!

Some more context: if you are found legally liable for a loss, and you don’t have adequate insurance coverage, you could be forced to pay large sums of money, sell off your assets, or have your future earnings garnished.  

Enough with the scare-tactics. We really want to get across the point that having enough liability insurance is important.

But first, what the heck is liability insurance?

The best way to understand liability coverage is to think of the other person. Liability coverage pays claims to other people for expenses that you are legally responsible for paying. This can include:

·      Bodily injury

·      Property damage

·      Medical payments to others

·      Legal expenses that you may incur, as a result of lawsuits brought against you

Your insurance liability limit is crucial for your financial protection because the costs associated with liability claims can reach astronomical levels, especially when you consider medical bills and damages that may be awarded to the injured party in a lawsuit.

We consider liability coverage to be amongst the best deals in insurance, meaning that you can purchase high coverage limits at a relatively low cost, adding significant value to your insurance policy. For this reason, we advise against decreasing your liability limits when looking to save money on your premium. There are ways to get cheaper car insurance without compromising this.

Why you shouldn’t lower your liability limit(s)

For auto coverage, insurance companies don’t like it when you decrease your liability limits. In their eyes, it can make you riskier. What may start out as an attempt to save money by reducing your premium, may actually end up costing you in the long run, as the insurance companies will seek to mitigate the increased risk you now pose by -- you guessed it --- increasing your premium.

If you are already insured and you connected us to your current coverage, we will review your current policy documents and do our best to match your current liability limits without decreasing coverage to get you on the road insurance.