Understanding State Minimum Insurance Coverage: Is It Enough in a Car Accident?

Car accidents are a common occurrence on the roads, and having the right insurance coverage is essential to protect yourself financially in case of an accident. Personal liability insurance is a crucial part of your auto insurance policy that covers you if you’re at fault in an accident that injures someone else or damages their property.

Every state, except for New Hampshire, requires car owners to have a minimum amount of liability coverage. This coverage includes bodily injury liability, which covers physical injuries to another person in an accident, and property damage liability, which covers damage to someone else’s property. These coverages are crucial in protecting you from substantial financial losses associated with an accident that you caused.

The minimum liability coverage required by states typically includes limits for bodily injury per person, bodily injury per accident, and property damage. For example, a common minimum coverage requirement is 25/50/25, which means $25,000 bodily injury liability per person, $50,000 bodily injury liability per accident, and $25,000 property damage liability.

However, these minimum limits may not be sufficient in some cases, especially if you have substantial assets that could be at risk in a lawsuit. Increasing your personal liability insurance coverage can help avoid situations where you may be required to pay large amounts out of pocket after an accident. Keep in mind that increasing your coverage limits will also increase your premium costs.

If you’re unsure of how much personal liability insurance to buy, it’s essential to consult with your insurance agent who can help you determine the right amount of coverage for your specific needs. Remember, having adequate personal liability insurance is crucial in protecting yourself and your assets in the event of a car accident.