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3 Things You Have At-Risk Now


You probably know about the dreaded liability coverage that you are required to have on your car that just seems like it's a complete waste of money. But do you know what your liability coverage is and what it means?


This is THE most important coverage you have on your policy. It will help pay for any physical damage, bodily injury, and lost wages due to injuries that you have found to be at-fault for.


Imagine you are in the car and you see someone playing with a cute dog outside to your right so you indulge your curiosity and look away from the road so you can get a better look at the dog. In that instant you looked away, you didn't notice that everyone had abruptly stopped in front of you, and by the time you look forward again, it's too late and you slam into the back of the vehicle in front of you, causing a 4-car pile-up. Now you are responsible for all the repairs to the vehicles in front of you as well as all injuries you may have caused.


Your liability limits will pay for these damages. In Arizona, the state minimum bodily injury limits are $25,000 paid out per person you injure with a limit of $50,000 paid per accident. The average cost of hospitalization for a single car accident victim is $57,000. That means you would be responsible for $32,000 after your insurance paid out. The state minimum property damage limits are $15,000. Many average commuter cars these days are over $20,000 when used and upwards of $30,000 when new, meaning you are responsible for anything beyond that $15,000.


If your limits are too low, you have three things at stake. These are:

  1. Home Equity

  2. Savings

  3. Future Earnings

If your limits are too low and there are excess damages, the other party may pursue you for any additional damages. This means they can come after your savings, any home equity you have, and even garnish your future wages to make up for that difference.


Although liability coverages are the most dreaded when buying insurance, they really are the most important. You don't want to find yourself underinsured and caught in a lawsuit to pay for damages you accidentally caused.


If you think you're underinsured, give us a call at (602)337-2723 or click the button below to receive a quote and we can go over what is at stake and make sure you have the protection you need!


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