People always ask "how much liability do I really need?” Well, just read the news and then you tell me what you think. What happens if you are driving along and the kids in your back seat get a little out of control, you look back for just a second to yell "stop that!" (so they aren't distracting you) ... but when you look back at the road you realize you are running a red light and hitting a car. Did the passenger in the other car get hurt? Did they get air lifted to an ER in a distant town? Did they die? Lawsuits today are seeking higher and higher amounts ... Here's a case filed late last month where a semi ran a light and killed a girl, and the parents are seeking 5 million! In the next one a hunter (drinking beer and hunting on the property without permission) is suing the homeowner because he fell out of the tree.
So, in answering the question, you need enough liability insurance to protect your assets in the event you found to be responsible for injuring someone or destroying their property. Your assets are you home, land, autos, boats and other property and you cash, retirement, and income for the next two years. Add it all up and ask yourself this question. "if I hit someone in my car and hurt or killed them, what would the family likely try to get from me?" The answer is that number you just came up with ... in other words 'the most money possible given your personal financial picture.'
Don't think that state minimum coverage for auto liability is enough because it won't help you keep your house if you get in a bind. Keep your homeowners at least as high as your per accident BI limits and always do what is reasonable to protect the general public from injury associated with you and your property. You can't stop someone from suing you, not to mention you can't stop a jury from awarding a settlement from your pocket to theirs.
Some things should not be skimped on.
J
