Reader’s Question:

I have an sr-22. Does this cover the other car in case of accident if its my fault?

Amy

Good question Amy.

The sr 22 is your certification that you have meet the states minimum financial responsibility coverage.

The coverage would cover the other car if your state includes the Property Damage Liability.

The property damage liability covers you if your vehicle damages someone else’s property. It could be any property aside from the car you hit on the time of the accident. It is also your legal defense if they file a lawsuit against you. It is recommended that you buy enough of the insurance to give you coverage on the damage that your car might do to the other vehicle. The coverage is limited to the terms and conditions contained in your policy.

If you select a limits that are too low, this might be risky financially. If the damage exceeds your limits, you are responsible for the amount above your limits. You might be forced to liquidate property or your assets. You can help yourself by against this risk by purchasing liability limits for both your current assets and future net worth.

Goodluck!

MariCAR