Many people go with whatever the minimum amount of insurance they have to get. This may not be the best decision financially though. State requirements are often quite low compared to how much it would cost with a major accident. For example, your state may require $100,000 for liability coverage. Just think about how much medical bills can cost if someone suffers a major injury. The total cost could be over $1 million, which would be significantly over your insurance coverage. You would have to pay the rest out of pocket. If you’re unable to pay, the other party could file a lawsuit against you. Liability is one area you don’t want to underestimate. You could lose your assets if the other party prevails against you with a lawsuit. The cost of additional coverage is insignificant compared to how much it could save you if you’re involved in an at-fault accident.