Q: What Auto Insurance Liability Limit Should I Carry?
Dave typically recommends a minimum of $100,000 of protection for all operators. Many states may only require a lower amount but the cost difference is very small between these lower amounts and the appropriate levels. 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 now your future earnings could be garnished from a lawsuit and the cost of the higher liability limits are worth the added protection. Dave would recommend taking a higher deductible on your comprehensive and collision and use your emergency fund to cover the higher deductible…if a claim occurred. Raising your limits to even higher levels is also advisable based 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.