How Much Liability Coverage Should I Carry?

Learn how to choose liability limits that help protect your assets and financial future.

Choosing the Right Liability Coverage

Liability coverage is one of the most important parts of your auto insurance policy because it helps protect your finances if you are responsible for an accident that injures someone else or damages their property.

Louisiana requires minimum liability limits to legally drive, but those limits often are not enough to fully protect you in a serious accident. When deciding how much liability coverage to carry, consider:

• The value of your home, savings, and other assets.
• Your current income and future earning potential.
• How much financial risk you are comfortable assuming.
• Whether you frequently drive with passengers.
• The possibility of medical bills, vehicle damage, and legal expenses exceeding the state minimum limits.

If the damages from an accident exceed your policy limits, you could be personally responsible for paying the remaining costs.

For many drivers, increasing liability limits is one of the most affordable ways to add significant financial protection.