When it Comes to Purchasing Car Insurance, How Much Liability Coverage is Enough?

When it comes to purchasing car insurance, how much Liability Coverage is enough?

At McCollum Insurance, we never recommend purchasing the Pennsylvania minimum required coverage limit.

Not sure what the state limit for liability coverage in Pennsylvania is?

The following minimums apply:

  • Bodily Injury Liability:
    • $15,000 per person,per accident.
    • $30,000 total per accident.
  • Property Damage: $5,000 per accident

Not sure what Liability coverage is?

  • Bodily Injury Liability – pays for injuries and other damages to others from an accident in which you are at fault.
  • Property Damage – pays for damages to someone’s property from an accident in which you are at fault.

We always recommend purchasing enough coverage to protect your assets (such as Homes, Cars, Money in Savings Accounts, Retirement Accounts, Investment Properties, etc.). It will cost you more in insurance premiums to increase your Liability Coverage over the minimum requirements, but you will have the right coverage in place,  to protect you from incurring out of pocket expenses, after a car accident.

For example, I drive a 2016 Toyota Highlander, which has a value of approximately $40,000. What happens if someone hits my vehicle (and causes $20,000 in damage and $75,000 in Bodily Injury), and only has the Pennsylvania Minimum Limits?

  • The At Fault Party will have out of pocket expenses of:
    • $15,000 for Property Damage and $45,000 in Bodily Injury
  • If you do not have enough coverage to pay the above damages, you will face
    one or more of the following:

    • Lawsuit
    • Loss of Assets
    • Lien on Future Earnings

If you would like more information on the State Required Limits, visit the Pennsylvania Insurance Department Website.

How much does it cost to increase my coverage?

You will be shocked at how little your premium increases, when you increase your coverage. We cannot stress enough, how thankful you will be after an auto accident, when you have the right level of protection. Don’t get overwhelmed and stressed about your insurance coverage, call McCollum Insurance, we will help.

Additional Types of Auto Insurance Coverage

In addition to carrying the right level of Liability Protection, we always recommend discussing the following additional coverages:

  • Uninsured and Underinsured Motorist – Pays for injuries to you and your passengers from an accident caused by a motorist who does not have insurance, or does not have enough insurance to pay your claim
  • Collision and Other Than Collision Coverage – Pays for the Physical Damage to your vehicle
  • Rental Reimbursement and Road Service
  • New Car Replacement
  • Lease/Loan Protection
  • Umbrella Liability – A policy designed to provide protection against catastrophic losses. We recommend this Policy to clients looking for above-average Liability Protection.

Please do not hesitate to contact us for a review of your personal, business, or life insurance needs. We will be sure to provide the best customer service! Please visit our client testimonial page,  to hear what our clients have to say about McCollum Insurance Agency.

If you reside in Delaware or Chester County, contact our Newtown Square office at 484.420.7800

If you reside in Philadelphia. Montgomery, or Bucks County, contact our Philadelphia (Manayunk) office at 215.508.9000

Philadelphia-Pennsylvania-Home-and-Auto-Insurance

 

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Are you ready to save time, aggravation, and money? The team at McCollum Insurance is here and ready to make the process as painless as possible. We look forward to meeting you!

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