Whether your vehicle is owned personally or through your business, every time the vehicle is driven you take a risk. Accidents happen. If your driver is at-fault in the accident, you could potentially be liable for the bodily injury and/or property damage caused. How best to purchase automobile liability insurance coverage?
States vary in how much minimum liability coverage is permitted to insure your car. In Ohio, for example, the minimum amount of liability insurance to be carried is $25,000 per person / $50,000 per accident / $25,000 property damage. I do not recommend purchasing the state minimum coverage. It simply is not enough coverage to pay for damages and legal fees. For a personally owned vehicle, I recommend no less than $250,000 per person / $500,000 per accident / $250,000 property damage coverage. Yes, the cost may be higher but in the event of an at-fault auto accident, you'll have more coverage to pay the claimant. For vehicles titled to a business, I recommend no less than $1,000,000 combined single limits auto liability coverage.
Without adequate automobile liability insurance protection, coverage limits can be quickly used-up, leading to potential seizure of your personal assets to pay for damages. This could be financially devastating. Make sure you have adequate automobile liability insurance limits when reviewing your insurance policy.
About The Author: With over twenty-five years experience, Pat Thompson, CPCU, is a respected veteran of the property and casualty insurance industry. His commercial lines underwriting experience and independent agency ownership make him qualified to properly mitigate risk of any business.