Motorists have many options when it comes to the protection that can be purchased for their vehicles and themselves; some are required by law and some are optional. The majority of states follow the Financial Responsibility Law which mandates that drivers maintain Liability policies consisting of bodily injury and property damage to compensate third parties from accidents they have caused; these states set a minimum limit which must be purchased, but consumers have the option to purchase higher limits which should be considered because it may help avoid future financial burdens. States such as California have set liability limits of $15,000 for bodily injury for one person, $30,000 for bodily injury to two or more people and $5,000 for property damage; as an example, if an individual were to cause more than $5,000 in damages to another party’s property with their vehicle may be held accountable for any remaining compensation due to the property owner. It is often suggested that motorists raise their liability limits; preferably to $100,000, $300,000 and $50,000.
Many states follow the No-Fault law requiring motorists to carry Personal Injury Protection (PIP) which aims to ensure that compensation is in place for injuries regardless of who is responsible for causing a traffic accident. The state of Florida requires drivers to carry $10,000 in PIP; just as financial responsibility laws may not mandate adequate protection, the $10,000 limit in FL can easily be exhausted if the motorist sustains a serious injury and it may be wise to raise the limit. In some states this auto insurance coverage is optional and is often referred to as Medical Payments; for those who do not have a health or life insurance plan may benefit from this because it will pay for medical expenses and funeral costs resulting from a traffic collision for the policyholder, family members and passengers.
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