Buying the minimum level of liability coverage will help keep you legal, but it may not give you the right level of protection fr your needs. This type of protection, which pays for injuries and damages sustained by the occupants of the other vehicle when an at-fault accident occurs.
In a tort state, injured people have the right to sue to collect damages for their injuries and lost income. The driver who is responsible for the accident is also responsible for paying for repairs to the other driver’s vehicle, as well as any public property damaged in the incident.
The issue with limiting liability insurance to the minimum level required by law is that it may not be enough to pay for the level of damages caused in an accident. Once the available level of coverage has been exhausted, the at-fault driver is responsible for making up the difference personally. If the accident is a serious one, where the injured people require surgery and/or a lengthy hospital stay, a policy with a low limit may not pay for the medical bills, rehabilitation expenses and economic loss for the accident victims.
Instead of buying a policy with a low level of liability insurance coverage, a better choice is for consumers to determine how much protection they need and then looking at ways to keep costs down. Increasing the policy deductible and asking about available discounts can mean that a driver can afford to buy a policy with a higher limit.