When drivers are looking at auto insurance liability protection, they may be wondering how much coverage is enough? A person who is working under a strict budget may be thinking that lowering the coverage limit on his or her insurance coverage is a wise decision, but not having enough protection in place is not the best choice for drivers. An insurance policy will only pay out up to the level of protection the customer has purchased. If the level of damages caused exceeds the available coverage, then the at-fault driver in an accident is responsible for paying the difference personally.
A recommended level of coverage for drivers who want to avoid being faced with having to use their own resources to pay for damages caused in an accident is $100,000 to compensate a single accident victim and $300,000 to pay for all injuries and damages resulting from the same accident. A minimum of $100,000 in property damage liability protection is also recommended, and this protection will pay for repairs to the other driver’s vehicle and any public property damaged or destroyed in the accident.
Policyholders buy insurance to protect the assets they have worked so hard to accumulate over the years. The cost of premiums is money well spent if it means that the policyholder does not have to pay for damages personally following an at-fault accident and customers can take advantage of available discounts to keep their costs down.