Auto Liability Insurance: determining the coverage you need

Auto liability insurance covers a person's medical expenses and the bills to repair damaged property and vehicle, in case of accidents. This is especially important if you are being held responsible for a vehicular accident and don't have enough money to own up to the expenses incurred. But how much coverage do you actually need?

Of course, liability insurance policies with higher limits is the most ideal to purchase because it can cover for almost anything, including medical and other expenses of people injured. The suggested coverage that you must have is 100/300 limits for bodily injuries and around AUD 29,000 for property damage. It's also important that you consider your assets when deciding on the amount of liability coverage you need, because “how much coverage you need is a function of what assets you have to protect.”

Those with substantial assets will need substantial coverage as well, but you can have them in various insurance policies. For example, you can purchase 100/300 limits of auto liability coverage, then purchase an umbrella policy, which includes coverage for all kinds of liability, not just auto. This may even turn out as a less expensive option.