The amount of insurance you will need will always be determined too late, once you have an accident. To try to understand how to protect yourself, you must first know what your liability insurance will cover. It is always divided into two parts, liability for bodily injury and property damage.

Bodily injury liability covers injuries caused by a car accident.

1. Initial help

2. Medical bills for injuries

3. Restitution for lost wages

4. Funeral expenses

5. Legal advice expenses

Property damage liability covers damage to objects caused by a car accident.

1. Structural damage to homes, shop windows, etc.

2. Expenses for repair or replacement of other stationary objects

3. Vehicle repair or replacement costs

So what coverage limit is right for you? Each state compiles its minimum guidelines individually. 15,000 / 30,000 / 15,000 is the minimum standard, but that can vary from state to state, so check your state’s guidelines. You may have noticed that there are three coverage figures and not two. This is because bodily injury liability generally has a split limit, unless you request a single limit of coverage.

Individual vs. Split Limit: In the above example of 15,000 / 30,000 / 15,000 in coverage, these first 15,000 would cover individual injuries to other people resulting from the accident that you caused up to 15,000 per person. The 30,000 represents the maximum payment for injuries caused in the entire accident. If you had a single limit on bodily injury coverage, it would be equal to 30,000 for the entire accident divided as necessary.

The last number on your liability coverage is always your property damage limit where the previous cast was also $ 15,000.

You have probably realized the downside of having state minimum limits of 15,000 / 30,000 / 15,000. With rising car prices and already high property costs across the country, it makes sense to have more than 15,000 for property damage. With medical expenses higher than ever, it only makes sense to increase the limits for bodily injury as well.

The most common coverage amount nationwide is the 100,000 / 300,000 / 50,000 divided limit, but you may want to consider even higher limits. The cost of increasing liability from 15,000 / 30,000 / 15,000 to 100,000 / 300,000 / 100,000 or even more shouldn’t cost more than a couple hundred dollars per year. Personally, I will spend a little more now to save thousands later, in case I am sued for expenses that exceed the limits of my coverage.