It’s important to remember that liability coverage is mandatory by law in almost all states in the U.S. The minimum amount drivers are required to carry varies from state to state, however. Therefore, when choosing coverage, it’s important to remember in an at-fault accident where the costs associated with injuries and property damage are greater than the selected coverage limits on your policy, you are responsible for paying costs that exceed the limits on your policy. It’s critical to select the right coverage to protect your financial wellbeing.
It’s often recommended to have more than the state’s minimum liability coverage. Generally having enough liability coverage to protect assets in the case of a serious accident is recommended. If, however, you have more than $500,000 in assets, an umbrella insurance policy, or excess liability insurance policy may be something to consider. Each driver’s needs and circumstances are different, so it’s best to consult an independent insurance agent to evaluate what type of policy is the right fit for you.
Full coverage may cost more but will offer a much higher level of protection. It also generally covers damage caused to your vehicle and may cover some medical bills incurred as a result of an accident.