What Are The Best Liability Coverage Limits?

By Sharon Gibson Posted in Car Insurance News



Liability Breakdown

All states require a minimum amount of liability insurance on all vehicles. The amount of coverage needed depends on the state requirements in the state you are insuring your vehicle in. There are three numbers associated with liability insurance; the first number is the personal injury limit, the second is the per vehicle limit and the third is the property damage limit. So, if your insurance policy had 25/50/25, then $25,000 would be the maximum amount paid out per person for personal injury, a $50,000 max per vehicle in the accident and a $25,000 max for any property damage.

Since liability insurance only covers damage to the other cars and people, if you are at fault in an accident then none of these numbers would apply to your vehicle or any medical bills incurred on your behalf. Some liability policies will extend coverage to passengers in your car but would still not cover you or your vehicle. The numbers reflect the minimum of state required liability coverage for the state where you will be insuring your vehicle. If you move out-of-state then you will be required to update your insurance to reflect the requirements of the state you are moving to.

State-By-State Liability Requirements

Alaska and Maine hold the dubious honor of requiring the most liability coverage with $50,000 per person, $100,000 per vehicle and $25,000 for property damage. Florida, Louisiana and Oklahoma have the lowest requirements with $10,000 per person, $20,000 per vehicle and $10,000 for property damage. The rest of the country falls in between with most states requiring $25,000 per person, $50,000 per vehicle and $25,000 for property. New Jersey and Pennsylvania only require $5,000 for property damage and 15/30 for personal liability and per vehicle respectively. Massachusetts also only requires $5,000 for liability coverage but 20/40 for personal and per vehicle coverage.

Purchasing More Than Just The Minimum

While some of these state liability requirements might sound good to your wallet it is probably a good idea to consider purchasing more than just the minimum your state requires. If you are at fault in an accident, then you could be responsible for the excess medical and property damage bills once your insurance company has paid out the maximum stated in your insurance policy. So if you get into an accident and the other car is totaled, if their car’s worth exceeds the $25,000 set aside in your policy then you would be responsible for the difference. Be sure to check your state requirements for liability coverage. If you live in a state where the requirement is low, then purchasing additional coverage would be a smart option.

Related posts:

  1. New Minimum State Requirements For New York Auto Insurance Quotes
  2. New Minimum State Requirements For A New York Auto Insurance Quote
  3. What Is The Minimum Amount Of Auto Insurance By State?
  4. How Does Bodily Injury Liability Coverage Work?
  5. What Are The Minimum State California Auto Insurance Laws?






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