One of the most important components of being a responsible motorist is having liability coverage on your car.  Liability coverage pays for any damages that you may cause to another party if you happen to be involved in an accident.  Most states do have a minimum amount of liability coverage that you must carry on your car, but simply obtaining a policy with these limits may not be a good idea.  Use this information to learn more about why it's so vital for you to take out an automobile liability insurance policy with more than the state minimum limits.

Liability Covers More Than Just Physical Damage

When you understand just how much liability insurance covers, it will become even more clear to you why you need more than the state minimum limits.  If your vehicle strikes another person or car, and you're determined to be at-fault, your liability protection will pay to have the other car repaired or replaced, cover any medical bills that the other party may have, and take care of lawyer's fees if there is a court case.  If you don't have high enough limits, you may find yourself holding a bill for the money that remains after you've reached your cap.

For example, the minimum liability limits in the state of Texas are $30,000 for each injured person, $60,000 per accident and $25,000 for property damage.  However, if you get into an accident where there happens to be four people in the car, who each rack up $50,000 in medical bills and they were riding in a $50,000 vehicle that is declared a total loss, the state minimums don't come close to providing enough coverage.  

This is why it's so critical for you to increase your limits as much as you can.  It protects your monetary future and could possibly keep you away from financial ruin.

Higher Limits Could Help If You Switch Insurers

Another reason why you should carry limits that are higher than the minimum is because it could help you get a better rate if you switch insurers.  When you have higher limits on your policy, insurers may offer you a better rate because higher limits may demonstrate that you are a responsible policyholder who isn't looking to switch insurance companies every six months.  These are the kind of clients that insurance providers like Donaghy Kempton Insurors want to keep, so they may offer a better rate to retain you.

Carrying higher limits is good for you and other drivers on the road.  Maximize your coverage so you can enjoy these benefits and more.