What Auto Insurance Liability Limit Should I Carry?

Dave typically recommends a minimum of $100,000 of protection for all operators. Many states may require less than that, but the cost difference is very small between these lower amounts and the level Dave recommends, which offers greater protection. The thing to remember is that your greatest risk is the liability exposure when you or a family member are operating an automobile. Even with limited assets, your future earnings could be garnished from a lawsuit, making the cost of the higher liability limits worth the added protection. Dave recommends taking a higher deductible on your comprehensive and collision and using your emergency fund to cover the higher deductible if a claim does occur. Raising your limits to even higher levels may also be advisable, depending on your personal assets and other exposures. It is generally recommended to carry an amount of liability insurance equal to or greater than the value of your home.

If you’re thinking of increasing your limits, switching auto insurance – you might just save enough to cover the costs of your added coverage!