If you have an auto policy, you have some very serious thinking to do about the liability limits you choose. The risk of being found at fault in a major accident is very high and has the potential for very serious consequences.
American Accidents by the Numbers
$18 billion – the approximate total amount of medical costs for lifetime care related to crash injuries
2.5 million – the number of people treated by emergency departments as a result of auto accidents
1 million – the approximate number of days that individuals injured in auto accidents spend in the hospital
200,000 – the number of people hospitalized as a result of crash injuries
33,000 – the number people killed in auto accidents
If you’re found to be at fault for an accident that caused injuries, the injured parties can make a claim against you for:
- Ambulance fees, medical care, and equipment costs
- Disfigurement and permanent injuries
- In-home care fees
- Long-term care costs
- Loss of wages and future earnings
- Rehabilitation costs
- Pain and suffering
- Service fees (e.g., home repair activities the injured party is not able to handle)
If the injury becomes a fatality, you may be assessed for:
- Funeral costs
- Pain and suffering
- Loss of future earnings
Lessons Learned
Carefully consider your Bodily Injury Liability coverage amount. States can have outdated minimum requirements that may not be sufficient to provide you with realistic protection in the event of an accident. Remember that more than one person could be injured in the accident and your coverage amounts may not meet the cost of all the claims against you.
Mind the Gap
Car accidents are the largest single cause of personal lawsuits. A single severe auto accident for which you are found responsible can result in a major claim against you. You may be held liable for the injured party’s medical expenses, property damage, lost earnings, future lost income, estimated future medical expenses, and more. Once your auto policy’s liability limits are exhausted, you will be responsible for meeting the cost of the settlement or judgment against you. If you have a driver’s license, you should also have an excess liability policy.
Contact Us
Our Risk Coaches are licensed insurance professionals who are trained to look at coverage from your perspective. They’re glad to help you navigate the often-perplexing world of insurance coverage. Contact your local risk coach, or call us at 855.227.8211, Monday through Friday, from 8:00 a.m. to 8:00 p.m. ET.
