HOW MUCH AUTO INSURANCE DO I NEED IF I OWN A HOME AND SOME OTHER ASSESTS?

In many cases an individual can be sued following an auto accident. This where your insurance plays a vital role for you. However, once the limits of your liability coverage are exhausted, you become personally liable for the remaining damages. If the remaining amount is minimal, then you would simply be able to pay them. On the other hand, an auto accident with an injury sustained by one or more occupants of the vehiicle in the US during 2007 resulted in over $375,000 in average insurance settlements. If you only have $100,000 in coverage, you would need to find a way to pay the remaining $275,000. The most valuable asset in most people’s lives is their home, and so when you receive a bill for $275,000, there is not much choice.

Like noted before, the person without insurance likely does not have any assets worth suing over when they have an accident with you…so the insurance company takes on the liability and will try to collect from that individual themselves saving you precious time and money.