As a way to answer this

As a way to answer this question, keep this important concept in mind: Liability insurance is normally purchased to protect your assets. A lot more assets you have, then the more responsibility insurance you should purchase. Likewise, every person should consider their own specific financial circumstances whenever deciding how much car insurance to purchase.

When you buy auto insurance, your policy Big Truck Accident Lawyer has particular limits up to which they will provide coverage. For instance, in Texas, the minimal liability limits for personal injuries happen to be $30, 000 per person, not to exceed $60, 000 per accident. This means your policy will provide up to $30, 000 per accident for any personal claimant, but will not pay more as compared to $60, 000 for any accident in the event there are multiple injured claimants. Any individual can purchase higher policy limits, but there is always going to be some limit useful to any automobile liability policy.

But what happens if the injuries are more compared to the policy coverage limits? To answer this problem, we must first discuss the lawful side of the issue and then review that to the practical side. Thus let's use this simple example. Believe you are involved in a car accident where you are discovered at-fault. Let's also assume that one other driver is injured to the melody of $50, 000 in health care expenses and is making a claim for the additional $100, 000 in discomfort and suffering. If you carried a baseline policy of $30, 000 per person, then your insurance company will only pay up to that amount in the event a judgment might be entered against you for the $150, 000. Technically, you would be personally responsible for the rest of the judgment.

However, this is where usefulness comes into play. Chances are that most people carrying the very least liability policy do not have the materials to pay-off a personal injury judgment. The injured claimant's attorney also knows that if a judgment is obtained in opposition to you for $150, 000, it is probably worthless beyond the amount payable under your auto insurance policy. Therefore, the

in these situations will make a demand on your own insurance company for payment of the insurance policy limits as full and final settlement of the injured person's statements. If your insurance company agrees to pay the particular policy limits, then the case is certainly settled and you are off the hook. Nearly all, (if not all) injury legal professionals know that their best chance of collecting any cash for their injured client is from your proceeds available under the liability coverage.

I am not suggesting that every person should purchase only the minimum policy limits. If the injured claimant's lawyer is doing his homework, the lawyer will probably do an "asset check" on the liable party before making a requirement for the policy limits. The reason for that is that the attorney may not be willing to settle for the policy limits if the liable party has substantial "non-exempt" possessions. In this case, it might be in the client's best interests to pursue the liable party's assets rather than just settle for the coverage limits. Such assets might include things like boats, RVs, rent houses, lake houses, land, savings accounts, stocks and options, bonds, investment portfolios, and every other assets beyond that of the average midst class household.

This brings us to the original rule of thumb: the more assets you may have, then the more insurance you should pay for. Likewise, everyone should have a very outspoken discussion with their agent before determining how much insurance to purchase.