What is auto insurance liability? And why is it important?

In South Carolina, auto insurance liability coverage pays an injured party’s bodily injury and property damage up to the limit of coverage purchased. Okay, what does that actually mean?

This means if you are at fault in an auto accident, your policy will pay the other driver for medical bills, missed work, etc. resulting from the accident and/or the cost to repair or replace their vehicle.

Why is this important? For one, the department of motor vehicles requires that you carry this coverage as protection for the general public. For another, this protects your bank account and assets from having to pay out of pocket for someone elses injuries or damages.

Now, let’s talk coverage limits. The state of SC requires that you carry at least 25/50/25. These are knows as “state minimum coverages”. With this format, your policy will pay the injured party up to $25k per person for bodily injury, up to $50k total per accident for bodily injury, and up to $25k for property damage. At Afore Insurance, we do not write state minimum limits as they do not adequately protect your assets. If you’ve been to the hosptial or purchased a car recently, you know that $25k does not go very far. To give you an example, if you are at fault in an accident that totals the other driver’s 2020 Chevrolet Tahoe, the replacement value on that vehicle is likely going to be somewhere between $40k and $55k. With state minimum limits, your policy would pay the first $25k of that, then you would be responsible for personally paying the remaining $15-30k.

That is why we recommend higher liability coverage limits. At minimum, you should have 100/300/100, but 250/500/100 is preferable.

If you’d like me to take a look at your current policy and provide a proposal including quotes from multiple carriers and recommendations on your coverage, reach out to me at savannah@mappusinsurance.com or on the contact form.