How Much Liability Insurance Do I Need?

Auto & Motor Vehicle Insurance Liability Limits

“How much liability insurance do I need?” is a very common question that customers often ask. State requirements are much lower than the amount necessary to protect you financially in the event of an accident. Average auto insurance liability limits may also not be nearly adequate if you are involved in any type of accident.

For instance, carrying $100,000 of liability coverage may sound like a lot but even that much likely won’t cover medical costs if you’re involved in an accident that causes injury, especially if multiple people are involved. When you consider medical bills, pain and suffering, lost wages, emotional distress, and residual pain and scarring, $100,000 doesn’t go very far. Without enough liability coverage, you would be required to pay the difference between your liability limits and actual costs of an accident. Even if there are no injuries involved, property damage caused to a single vehicle could potentially be over $100,000 if the other vehicle is a newer model year or luxury vehicle.

The smartest thing for drivers is to increase their liability coverage levels as high as they can reasonably afford to go.

If you are at fault in an accident and injure someone else or damage their property, you will be held liable for their expenses. Drivers without enough liability coverage to pay those costs will still be held responsible. The courts can seize your assets and garnish your wages to pay for damage you’ve caused, so having the highest possible liability coverage levels is the best way to protect yourself.

Talk to us about increasing your liability limits on your automobile or other motor vehicle policy. Often, the cost is minimal compared to the increased amount of coverage.