Yes. You should not only protect your personal assets if you cause an accident, but due to the vast number of uninsured and underinsured motorists on the roads, you need coverage to protect yourself if they cause the accident. Keep in mind that your car insurance covers both scenarios. First, if you cause an accident, then your insurance pays for those damages up to the policy limits. If the damages exceed the policy limits then you are personally responsible for the amount greater than the those limits on your policy. If a person is injured during the accident, especially if they are seriously injured, they could sue you for personal injury and collect on a large judgment. By purchasing insurance with higher limits, you are protecting your personal assets.
The second purpose for having a car insurance policy with higher limits is to protect yourself with “uninsured motorist” and “underinsured motorist” coverage. This comes into play when you someone else causes the accident resulting in injury and that person has no insurance or a limit less than yours, then your own insurance company will pay the difference up to your policy limits. For example, if you have a policy with limits of $100,000 and the person causing your injuries only has a policy with the minimum limits of $50,000, the at-fault driver’s company would pay their $50,000 and then your company would pay up to the difference (that is, up to $50,000 more) to equal the limit you have of $100,000.
Higher insurance policy limits protect you and your personal assets. For more information on personal injury claims, contact Ventura Law.