Erin Ray, Personal Lines Account Manager and Justin Kraus, Personal Lines Manager, explain what liability limits cover on auto insurance.
You most likely have insurance on your automobiles, but do you have adequate limits to help protect you in the event of a lawsuit? New York State has set a minimum liability limit of $25,000 per person, $50,000 per accident and $10,000 for property damage. New Jersey has minimum liability limits of $15,000 per person, $30,000 per accident and $5,000 for property damage.
However, these are extremely low limits and probably will not be adequate in the event of an accident. At a minimum, we recommend $100,000 per person, $300,000 per accident and $100,000 for property damage. These limits will better protect you in the event you are held liable for an auto accident, as another driver could sue you for lost wages, medical treatment, and pain and suffering, as well as legal fees, which can add up quickly. The Property Damage portion pays if you are responsible for damage to another person’s property, such as their vehicle, fences, buildings as well as telephone poles. Is it best to speak to your insurance agent to review your coverages and make sure you are aware of any gaps in coverage.