You can buy an additional $1 million (or more) in liability coverage through an umbrella policy for a relatively inexpensive amount. In California, a policy with 250/500/100 would be a much better choice than the state minimum.įor extra liability insurance above your base auto and home insurance policies, consider getting an umbrella insurance policy. How much liability insurance should I buy? A good rule of thumb is to buy enough liability insurance to cover what you could lose in a lawsuit against you if you cause a car accident. You’ll be on the hook for any amount above your coverage limits. And if you’re at fault for a car accident with multiple injuries, medical expenses can quickly exceed $30,000. If you total someone else’s car, $5,000 of property damage won’t get you very far. Nearly every state has a minimum liability insurance requirement, with the exception of New Hampshire and Virginia (although both states have some liability requirements under certain conditions).įor example, in California, you need to have liability insurance with at least $15,000 for bodily injury to one person, $30,000 for bodily injury to multiple people in a single car accident, and $5,000 for property damage (written as 15/30/5).īut here’s the problem: These amounts are insufficient if you cause a serious car accident. You are responsible for a car accident and the other driver is injured.You rear end another car at a traffic light and cause damage. ![]() Here are a few examples of what liability insurance covers:
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