How much liability should one get on auto insurance ?
Question:
Answer:
Enough to protect all of your assets plus a year or two of projected income. This would include things like your house.
Fortunately, the cost of liability insurance is quite low. Getting the maximum coverage offered is pretty cheap. Physical damage coverage for your own vehicles is *much* more expensive.
Depends on how old the car is, and how many people are driving the car. My car is old-so I have only basic coverage.
depends on where you live and what you own.
if you don't have a pot to p--- in then get the legal minimum.
some states limit the amount you can sue for, so if your state has such a limit, never buy more than that limit.
the easy answer is you should get as much as you can afford. However, if you have no personal assets to speak of, no one can get anything from you beyond your insurance, and you don't need quite as much. The purpose of insurance is to protect your own assets against judgments.
Getting the state minimum is dangerous in most states. (Alaska's state minimum is higher.) Liability insurance covers your assets, so instead of thinking about the value of your car, consider how much damage your car could cause. If, God-forbid, you crashed into a house, you could easily exceed $100,000 in Property Damage liability. If you were invovled in a fatal collision with a young profession father, you could be found liable not only for hospital and funeral costs, but the lost wages he would have earned if he had lived. Like someone else said, buy as much as you can afford!
I tell people, enough to cover what you're worth, PLUS what you are going to probably earn over the next two years.
Figure out what your state minimums are first, then decide that if you were to get into an accident, how much additional would you like covered as a civil lawsuit can be filled for additional reimbursement of medical, etc. Good Luck.
More Questions & Answers...