What liability coverage amounts do you carry on your insurance and why?

Answer 1

I carry 300/300/100 on my auto w a 1 million dollar umbrella policy.

Contrary to what SWH states it is NOT all about your net worth. If you ruin someone's life through injury caused by your negligence a judge may order you to pay for the rest of your life (if necessary) to make good on what you did.

Future wages, inheritances, lottery winnings, whatever are all fair game. Folks often buy minimum liability because they don't have much money, or are trying to save money....bad decision, when you might pay only abput a dollar or two per month to double the state minimum liability for your state.

Answer 2

Liability insurance is insurance that pays someone damages for actions you do that harms them.
For example, you drive your car through a stop sign and seriously injure someone.

That person can and will sue you for damages, if they are young and can never work again , and are paralyzed and need constant care. the judgement could be MILLIONS, and it doesn't matter if you have the money or not, you owe it and YOUR LIFE IS RUINED AS WELL AS THEIRS.

My car insurance is 3rd party liability 2 million
my house insurance has 3rd party liability of 2 million

When the other answers talk about 300,000 coverage, check out higher amounts, the cost is not a lot more.

Answer 3

Depends on your net worth. If you get into an acciden and it's your fault, you want to have enough liabilty insurance to protect your assets.

If you're net worth is $25K, there is no reason to carry $300K liability insurance. If it's $1,000,000, then you may want to carry the most you can afford, plus an extra umbrella policy to cover any amount over the maximum of your liability insurance.

Answer 4

I'm underinsured, I feel, because I can't talk my husband into raising our limits. The actual amount is irrelevant, as it is a very case by case basis.

Answer 5

100k/300k, because i can afford it and i dont feel like screwing people i might inadvertently harm