What is Auto Liability Insurance Anyway?
**always read your policy as coverages vary**
Auto Liability Insurance. If you have a car for your business, you need auto liability insurance. Not only is it a legal requirement, but it is a very important coverage to have. So what does Auto Liability Insurance cover and why is it necessary?
Auto Liability insurance is for those times when you are liable - or at fault - in an auto related accident. This means that you made a mistake, and now there is damage to the other party's passengers, car, and property.
This is the exact scenario that Auto Liability insurance is designed to take care of. As long as the accident itself is covered under your policy then your Insurance Carrier jumps in to save the day.
The Insurance Company will then determine whether you are at fault in the situation, and whether the accident is covered by your policy. If it is, and you are at fault, then they will pay up to the limits of your policy in order to cover injuries to others, damage to others cars or property, and for any legal proceedings that arise out of the claims.
So as you can see, liability is very important. It pays for the most expensive things that can happen in the case of an accident - the injuries and damages.
As a rule, we recommend that you look at your auto liability limit carefully. Business Auto policies are usually highly regulated by the state and or federal government and require limits near the $1,000,000 mark. Depending on what your vehicle is doing, those legal limits may be enough. For example, if you are driving an SUV in Washington State to and from the Airport picking people up, the required limits are $1,050,000. That may be enough for that seven passenger vehicle. But there is a reason that the limits go up the more passengers are in the vehicle.
The majority of insurance carriers do not like to increase the limit beyond the state minimum, but you have options. Whether that be with an excess or umbrella policy, you can help ensure that your liability limits will be there when you need them.
So take a close look at your Auto Liability limits with your agent, get a few quotes, and see what the best option is for your protection and your budget.
Want an expert opinion on your auto policy? Give us a call at 800-843-2430 and we'd love to help you!