Far too many people do not purchase enough liability insurance coverage. Instead, they simply buy the minimum amount that the state they live in requires, and this is a recipe for disaster. Every state dictates how the insurance industry runs in that particular state, and each one determines the amount of liability coverage that drivers must carry. Far too often, the amount of liability coverage required is too low. So, if you simply purchase the state’s minimum amount of liability coverage, you can find yourself having to pay out-of-pocket expenses if you lose a large judgment.

Some states allow drivers to purchase only a minimum of $30,000 for bodily injury. States also often cap the total accident liability limit that they will payout if you purchase the minimum to $60,000 total for an accident and $25,000 for any property damages. Purchasing only the state’s minimum amount of liability could put you in danger of being on the receiving end of a lawsuit should you be in a serious accident. You should consider increasing your liability coverage to protect yourself and your family’s assets from lawsuits should you cause an accident.

According to studies conducted by AAA, car accidents in America cost more than $164 billion each year which translates into more than $1,050 per driver. That figure takes into consideration the costs of medical care, police and emergency services, property damage, reductions to quality of life, and lost productivity from missing work due to an accident. A minor car accident without injuries can cost about $1,000 to repair the vehicle, and major accidents which damage large portions of a car can cost more than $5,000. While these figures seem small initially, it is important to remember that they are an average. You can quickly find yourself in over your head if multiple people in an accident are seriously hurt. For example, a surgery to repair a broken wrist can run as high as $8,000. It would not take much to quickly owe more in medical bills than the state minimum liability insurance coverage limits.