Can you have too much liability insurance?

How much liability coverage should you have?

You will be required to carry a minimum amount. For example, in California you need to have 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).

Is it good to have high liability?

According to most well-meaning experts, you should always go for higher liability limits. You cannot predict the kind of injury your customers/clients may suffer, so it is best to stay safe. They may have a sprain or a fracture, and you may have to pay for the medical expenses.

Why is it important to have higher liability limits?

High liability limits protect you if you’re at fault and won’t leave you needing to sell your house to pay for the cost of an accident, say totaling another driver’s car, or for legal fees should you face a lawsuit.

What is the downside to liability insurance?

Any damage to your vehicle will need to be paid out of your own pocket – and it can be pricey. Auto repair is expensive when a vehicle is damaged in a collision. Less valuable vehicles can be covered by liability only. …

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How much bodily injury coverage do I need?

Bodily Injury Liability Requirements by State

State Min. Liability Coverage Per Person Min. Liability Coverage Per Accident
California $15,000 $30,000
Colorado $25,000 $50,000
Connecticut $20,000 $50,000
Delaware $25,000 $50,000

How much uninsured motorist coverage do I need?

We recommend a minimum of $100,000 in UM coverage.

It’s also important to think about the amount of your uninsured motorist insurance coverage. Note that you will be required to carry equal or higher liability coverage compared to the uninsured/underinsured motorist insurance coverage you get.

Is 300k liability enough?

The amount of Liability coverage you carry should be high enough to protect your assets in the event of an accident. Most experts recommend a limit of at least $100,000/$300,000, but that may not be enough. This is no place for cheap auto insurance.

What if my car is totaled and I only have liability?

If your car is totaled and you only have liability insurance, you will have to pay to replace the vehicle yourself or file a claim with the other driver’s insurance company. Liability coverage alone does not protect your car in any way, just injuries and damage you may cause to others.

What does 100k 300k 100k mean?

You should have at least 100,000/300,000/100,000 split limit coverage. That means: $100,000 of coverage per person in an auto accident, $300,000 of coverage altogether for injuries in an auto accident. $100,000 of coverage for property damage to other people’s vehicles.