What is Liability Insurance and Why Do You Need It?

Have you ever looked at your insurance policy and wondered just exactly what it is you are paying for?

  

Everyone knows that they are legally required to carry liability insurance.  But many people don’t really understand what that means or how it works.  

In simple terms, liability insurance pays to fix damage that you cause to someone else.  

Auto Insurance Liability Coverage

On your auto insurance policy, this is split into three pieces.  Here is an example:

Bodily Injury:  50/100

Personal Property: 50

Let’s say that this was your coverage amount and you hit another car in an accident.  Your insurance would pay up to $50,000 per person for injuries, up to a maximum of $100,000 per accident.  And it would pay up to $50,000 in property damage to fix the other car.  

Remember, liability only covers the person that you hit.  It doesn’t cover your vehicle or anyone inside your car.  

There are many different amounts of liability coverage.  We work directly with our clients to determine how much you need.  This will vary based on factors like how many assets you have, your income, and home's value.  

Not having enough liability insurance is one of the biggest financial mistakes you can make!  Carrying only the Washington state minimum of $25,000 per person/$50,000 per accident/$10,000 property damage, could leave you open to a lawsuit.  Think about those cars you’ve seen on the road worth easily over $40,000!  If you don’t have enough property damage coverage, then you are at risk.  

Homeowners Liability Coverage

There is also liability coverage on your homeowners or renters insurance.  It pays if someone is injured on your property due to your negligence.  One common example is a dog bite.  This is another time when it’s good to have enough liability insurance!

Hopefully this clears up any questions you have about how liability insurance works.  If you need help determining the right amount of coverage for your family, give SAV-ON a call at 888-867-2866 for a no obligation review and quote.  

9 Ways to Save on Auto Insurance

Looking for ways to keep your auto insurance premiums manageable?  Here are 9 ways you can save on your insurance (without sacrificing coverage.)

1. Your Driving Record

Your driving record plays a big role in how much you pay for insurance. By keeping a clean record for 3-5 years, you can save hundreds of dollars! Be a cautious driver, don’t speed, and you'll lower your premiums.  

2. Defensive Driving Course

Defensive driving courses are an easy way to achieve an extra discount. They can also help keep a ticket from showing up and messing up your clean driving record. Make sure to call us before taking the class if you're using it for a discount so we can verify that your policy qualifies.

3. Anti-Theft Devices

Installing an alarm or other anti-theft device can lower premiums on your vehicle. Make sure to discuss all features with us, sometimes even power locks and a remote can count!

4. Your Credit Score

While insurance uses a different formula than the credit bureaus, your credit still affects the rate you pay. Good credit can save you hundreds (even thousands) on your premiums! Make sure to review your report on a regular basis and have any mistakes corrected.

5. Where You Live

Rural areas pay less for insurance than the big cities do. It's all about risk, and with a large population there is more chance for an accident. Therefore, where you choose to live can impact your rates. Consider contacting SAV-ON before purchasing a home if you’re concerned about the costs (it is based on your zip code).

6. Your Vehicle

The vehicle you choose to purchase also makes a difference! Some vehicles cost a lot more to repair than others, which drives up their rates. Easy way to avoid buying a money-sucker? Call us first and let us quote the vehicle before you sign on the dotted line.

7. How Often You Drive

If you take public transportation and only drive on the weekend, you'll pay less than someone with a long commute. Make sure to review your annual mileage and daily commutes with us (especially if they change) so that you can receive the extra savings.

8. Raise Your Deductible

A higher deductible (your out-of-pocket cost in a claim) means a lower monthly rate. If you have $1,000 in savings and could afford to use it if you had an accident, then you’ll save on your insurance cost by having a $1,000 deductible instead of $250. We can help you review the costs and benefits in your specific situation.

9. Your Insurance Agent

And the best way to save? Work with a local agent! You'll get the coverage you need plus you'll have an advocate working on your behalf to find the best rate, all the discounts, and an easy explanation of any gaps in your coverage. It's the #1 way to control your risk, maximize your savings, and protect your family.

SAV-ON wants to be your agent! Call us at 888-867-2866 to discuss your policy today, or schedule an appointment online at www.sav-on.com!