Question

How much liability coverage do I need?

I just moved to a new state and when I notified my insurance company they went over what is required for me in California and the numbers seem extremely low. I came from Texas and it seems my coverage was much higher even though I was only carrying the minimum. What should I do?

Mar 10, 2016 Lancaster, CA

Answer
Neil Richardson

Mar 10, 2016

How much liability coverage do you need? Good question. There is a minimum amount of liability coverage that your state requires you to carry on your auto policy to comply with the law but the minimum limits often aren't sufficient coverage to adequately protect your assets from a lawsuit. In states that require a very low amount of liability coverage (like California, Arizona, and Florida) it is a good idea to carry higher limits than just the minimum requirement. The general rule of thumb concerning liability is to carry as much as you can afford to avoid exceeding the amount on your policy. If you are involved in an accident and the injury or damage that you cause to the other driver or their passengers exceeds the limit of coverage on your policy then you could be sued for any amount above what you carry for liability.

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