If you own a luxury car in Birmingham, AL, you may want to consider higher liability limits for your auto insurance policy. Several factors put you at a higher risk for unexpected lawsuits after an accident. The staff at Birmingham Insurance Agency LLC can walk you through how to protect your vehicle and your overall assets.
Why Higher Liability Is Necessary
The higher cost of luxury vehicles can result in higher repair costs, medical expenses, and property damage claims due to their augmented value and the potential for complex repairs. Many luxury cars are high-performance vehicles, which can increase the risk of accidents. Higher liability limits are also a good idea for instances where you feel an at-fault driver’s insurance doesn’t adequately address repairs to your vehicle.
Protecting Your Personal Wealth
Some accident victims see luxury car owners as a potential source of income if they are severely injured. Lawsuits involving luxury vehicle owners tend to be higher because of the perceived notion that these individuals have more means to pay for damages. Nevertheless, some victims may go after your personal assets to achieve their desired level of compensation. When you have sufficient liability limits, you’ll protect your personal assets.
Generally, the more expensive your car, the more liability you’ll need. Consider your net worth when purchasing liability limits. The goal is to buy enough liability to protect your personal assets. Consider umbrella insurance, as this type of policy has liability limits of $1 million and above for low premiums. It provides a cost-effective way to raise your coverage limits over your home and auto policies..
Discussing your financial situation with Birmingham Insurance Agency LLC, serving Birmingham, AL, can help you determine the right amount of liability for your auto policy. Contact our office to get started.
