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  • What kind of auto insurance do I need?
  • July 8, 2015
  • States that require liability insurance have set minimum levels of coverage you must carry. New York State law requires that motorists carry a minimum amount of liability insurance of $25,000 for bodily injury to one person, $50,000 for bodily injury to all persons, and $10,000 for property damage in any one accident. Mandatory “no-fault” coverage of $50,000 is also required.  However, state minimums may not always be enough.

    Loretta Worters, spokesperson for the Insurance Information Institute (III), advised that policyholders should not rely on a minimum amount of liability coverage. The insurance industry generally recommends liability limits of 100/300/50.

    “You don’t want to only have a minimum amount of coverage,” Worters said. “If the cost for damages exceeds your limit, you will have to pay the remainder of the bill out of your own pocket.”

    Understanding liability limits

    An example of how car insurance limits are written would be: 100/300/50

    1st number: maximum bodily injury liability per passenger

    2nd number: maximum bodily injury liability per accident

    3rd number: maximum property damage liability per accident

    If your liability limits are too low and you cause an accident, you may end up paying for the remainder of the damages out of your own pocket. An expensive car accident can put your financial security at risk. If someone sues you, without a higher limit of coverage, your personal assets could be at-risk.

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