Should You Raise Your Minimum Car Insurance Liability Limits?

Save Money or Up Liability Limit... Know Your Minimum Liability Insurance Needs

First, What is the Purpose of Your Car Liability Insurance?

Liability car insurance is one part of your car insurance policy. It is meant to protect you if you are found liable or responsible for something. Take for instance you damage someone's car in the parking lot when opening your door. Your car liability insurance will cover the damage to their car.

Another part of your car liability insurance policy is the legal defense coverage.

Say you get sued because of something you are found liable for while driving. Then your car liability insurance coverage will also cover your lawyer and court fees.

What are the Minimum Car Liability Limits?

The minimum liability car insurance limits are what is required by law in each state before one can drive. You are required to carry the liability car insurance limit from the state in which you live in. Unfortunately, many choose the legal minimum liability insurance to try and save money but this, in most cases, is a bad idea.

The legal minimum liability insurance limit to drive may not be the best coverage for everyone. For example, now that you know what liability car insurance is and how it works, let's say that you were sued for something you were liable for and you only obtained the minimum car insurance required for your state. That means whatever liability limit you chose, that is the most amount that you will get to use for any damages you were liable for any legal defense you may need.

Considering how much it costs to have a lawyer and to go through court, do you trust your minimum car insurance liability?

What is the Best Amount of Car Liability Insurance for Me?

This obviously is a question that would need to be determined on an individual basis. It is best to work with a trusted insurance agent that understands your needs and budget.

However, it is generally accepted among insurance agents that the state minimum policy limits are not enough. Most insurance professionals would agree for the average driver the best liability limits to have are 100/300/100. This means:

100,000 per person for bodily injury
300,000 per accident for bodily injury
100,000 per accident for property damage

What if I Want Even More Liability Insurance Coverage?

Many consider adding on an umbrella insurance policy for added coverage. Umbrella insurance is designed to give one added liability protection above and beyond the personal liability limits on homeowners, auto, and watercraft personal insurance policies. With an umbrella policy, depending on the insurance company, one can add an additional 1-5 million in liability protection. This protection is designed to “kick-in” when the liability on other current policies has been exhausted.