What kind of automobile insurance will give me and my family the most protection?
answer:
The one protection every driver should get as much of as possible is liability insurance. In fact, you must by law meet your state’s minimum requirement, if it sets one; but you should have much more than any state minimum. Liability insurance actually protects others against you by paying for any injury you might do them to body or property—and court awards in accident cases resulting in serious disablement or death can wipe you out financially. There is simply no limit to the amount of money you might have to pay, so the more you can meet through your insurance, the better.
The amount of coverage in liability insurance is shown by three figures. For example, 10/25/5 means that the insurance company will pay $10,000 for one person killed or injured by you, $25,000 for all killed or injured by you in a single accident, and $5000 for damage to property, mainly the car that was hit. In case of a lawsuit, anything the court gives above these figures —and it can be astronomical—must be met by the insured. To skimp on liability coverage is to be worse than foolhardy. If you have to forego other insurance on your car, you should buy the greatest amount of liability you can. The cost of more coverage is fairly reasonable, because a small extra premium brings a large increase in protection. For example, if 10/25/5 costs $100 a year, another $15 a year gets 20/40/5, another $19 gets 25/50/5, and steps up in like proportion can get 300/500/10 with a $47 a year additional premium on the base. You should try to carry the last-named amount if possible.
Another important aspect of liability insurance is that one policy covers the car owner, other members of his family, anyone using the car with permission, and the owner and his wife when driving a car not their own. If you have teenagers or young adults under about age 25 using your car, the premium may go up somewhat, but the coverage is more vital than ever.
