1 Answer

0 votes
by
Experts recommend basing your liability insurance coverage on your assets. If you have significant assets—a home, savings, etc.—you will want to buy coverage over the state’s minimum requirement. How much over depends on a variety of factors, including how risk averse you are, how likely you are to get into an accident (Do you routinely drive treacherous roads at night or have a history of accidents?), the amount of your assets, etc. Only drivers who have a low net worth or income and who can’t afford the cost of more protection should consider trying to get by with the minimum amount of liability insurance. In such a case, you would still be liable for the damages and injuries from an accident that is your fault, but there might be nothing for the other party to take from you. Consult your insurance broker or agent for guidance.

Related questions

0 votes
    Why should I buy auto insurance?...
asked Jan 31, 2021 in Insurance by Editorial Staff
0 votes
0 votes
    What are the different types of Insurance Coverage?...
asked Dec 31, 2020 in Health by Editorial Staff
0 votes
    My policy “declarations” page says 50/100/25 next to my liability coverage—what does this mean?...
asked Jan 31, 2021 in Insurance by Editorial Staff
0 votes
0 votes
    What is auto insurance?...
asked Jan 31, 2021 in Insurance by Editorial Staff
0 votes
    Does it cover silver or golden ornaments if I have ‘Home insurance’?...
asked Dec 31, 2020 in Health by Editorial Staff
0 votes
    What is a ‘PLPD’ insurance stand for?...
asked Dec 31, 2020 in Health by Editorial Staff
0 votes
    What is ‘gap insurance’...
asked Dec 31, 2020 in Health by Editorial Staff
0 votes
    In what all Instances you cannot claim your Personal Accident Insurance?...
asked Dec 31, 2020 in Health by Editorial Staff
0 votes
    What is third party Insurance?...
asked Dec 31, 2020 in Health by Editorial Staff
...