You are required by law to carry at least the state minimum; a figure that varies state by state.
However, how much you "NEED TO" carry depends on your own personal financial situation. It's a good idea to occassionally review our coverages, assets, net worth and risk exposures can change with time.
A policy that might have seemed adequate when purchased years ago, may not offer suficient protection for todays financial exposures.
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If you have financial assets that could conceivably be considered in a costly lawsuit, then you need to carry increased limits of coverage. I carry auto liability limits that are far and above what I am required by law to carry.
Even with these higher limits, I still worry about any excess. I am considering a Personal Umbrella Policywith limits up to $2,000,000
Assets to consider, ALL of which could be at risk: Home, savings, investment accounts, personal belongings, FUTURE EARNINGS (!!!!)..... some scary stuff....
Automobile Liability insurance, YES. Liability insurance, NO. There are many kinds of liability insurance.
You will need the basic liability insurance. This means that you will be covered for the other person's car if you are in fact responsible for the accident.
If the car is paid off, then only liability insurance is needed. If it is not, then you will need a full insurance coverage plan.
You can purchase car liability insurance from the same company you get your regular car insurance from. If you are a new car insurance customer, ask your agent to add liability insurance to your plan.
First you need to check with your state to find out how much liability insurance is required as it varies from state to state. Then check with your insurance company to make sure you have the correct amount of coverage and to see exactly what it covers.
The cheapest car insurance in New Mexico is liability only car insurance. This insurance can cost as little as $60 a month.
Your liability coverages should apply, if you feel you need more coverage when you are renting a car then when you are in your own car I would go ahead. Usually their insurance is not necessary, I would verify this with your agent though.
You are required by law to carry Compulsary Insurance Only. This would be Liability and Property Damage. I believe the current limits are 20/40 Liability and 5,000 Property Damage.
If another person was at fault for the accident, you will need to go after their insurance company. If you are liability only, your insurance company will not pay for anything.
I need answer why human body inssurance does not exist, like car insurance/liability insurance or full coverage.
When a car is borrowed (with permission) the insurance of the car owner is primary and the insurance of the driver is secondary. Here, the car owner has no coverage to pay for the damage to his/her own car, so the driver's liability insurance would cover the cost of the car. That is assuming the driver has liability insurance, if the driver doesn't have liability insurance, the car owner is stuck (unless he sues the driver).
It sorta makes sense that you would own a car. If you do not own a car why would you want liability insurance?