State required auto insurance liability levels are a starting point for drivers who are looking for coverage. They must put at least the minimum level of protection in place to stay legal, and insurance companies must offer quotes for policies which reflect at least this coverage level.
A driver who buys a policy with only the minimum level of coverage required by law can stay legal, but this type of policy may not provide enough protection to pay for the damages caused in a serious accident. A driver has the option of buying a policy with a higher limit if he or she wishes to; the cost of coverage will go up with the level of liability coverage purchased.
When an at-fault accident occurs, the liability coverage will pay for damages up to the policy limit the driver has chosen. Any amount above this level is the personal responsibility of the driver. With the ever-rising cost of health care coverage, buying a policy with a higher level of protection makes good sense for drivers.
In a situation where the accident is severe enough that the occupants of the other vehicle need to be admitted to hospital and require surgery, the amount of coverage provided by a basic policy will be used up relatively quickly. Before making a decision about how much coverage to buy, a consumer should consider how having to pay for damages caused in an accident would effect him or her and then buy enough protection to feel secure.