Financial consultants are not in agreement with insurance agents about the weight that needs to be kept on limits of liability in motor vehicle insurance. Marketers like to stress the aspects of price and insurance company rating, while financial advisors like to stress the relevance of liability limits in the beginning, then company rating second, and probably price at a last stage.

In spite of the fact that financial planners and motor vehicle insurance marketers have the common goals and objectives in life of maximizing their earnings while furnishing their services, the scope of their action is totally different. Motor vehicle insurance marketers make their earnings by selling as many polices as they can. The marketer does her/ his best to make as many sales as it could be, hence making small amount of money on too many policies sold. Financial planners work a bit differently as they try to make big money from every one of the few number of clientele they have. Delivering car policy is not the principal priority of a financial planner, but for him or her car insurance is one of the essential subjects of the financial planning procedure.

Car insurance producers look at automobile insurance as a strategy to allow safeguard in case there is a loss to the automobile itself such as theft, fire or another loss; other than the point that insurance is the law. Financial planners look at auto insurance as an integral part of their clients risk management process. To the financial planner an car policy is not to fix the car in the event of loss, but is primarily about protecting the assets and capital of the insured, especially against likely legal proceeding.

Some auto insurance marketers would even suggest to cut down on liability insurance to state limits as a method to save money. No wise financial planner will ever make such an advice. Impossible!

When does liability height matter?

How high your liability limits out to be? This is the main matter that should prevail on the top of list of your review qualifiers when you buy automobile insurance. You, probably, need only the minimum liability limits required by the state if /when(1) you shopped for higher limits and could not afford to pay for it, (2) your available assets or investment is not big enough to expose you to further legal cases in the event of at fault car accident. (3) you are a high risk operator where no no other insurer wants to provide insurance for you except at the minimum limits. But, if you have certain amounts of assets and wealth, or is expected to have sizable assets or wealth in the future, then you need to be concerned about the amount of your liability coverage.

What about if you are not rich? Even for people with little or no income, the level of liability limits should be much of a question to them. This is due to the fact that liability insurance has certain coverages to pay for your bodily injuries in the occasion that you get hit by a auto that is correctly uninsured, or is insured but the insurance on that vehicle was short to cover your bodily injuries. According to the Insurance Research Council, around 15% to 17% all drivers in the United States are uninsured. Coverages for Uninsured Motorist (UM) and Underinsured Motorist (UIM) change from state to state pertaining to their mandatory status and limit minimum required amounts. In Illinois Uninsured Motorists insurance is mandatory at the minimum levels of $20,000 for bodily injury per person and $40,000 for bodily injury per accident. Underinsured motorists (UIM) coverage is not mandatory in the State of Illinois but insurance providers must supply it to clients for auto policies issued with liability over the state mandated limits.