Generally, a driver with few personal assets (e.g., someone who does not own a house and has a moderate savings account) doesn't need liability coverage, as it's not likely that someone who you injured would actually be able to successfully recover much, if anything from you. You can’t get blood from a turnip, and attorneys know this too.
On the other hand, if you have a ton of personal assets (think a million-dollar home and a significant savings account) but you don't have enough insurance to cover the other driver's physical injuries and property damage, they could sue you and seize other assets.
Simply put, the more you stand to lose, the more liability coverage you should purchase.
But if you don’t have a lot of assets, you still might want to consider purchasing more coverage. With auto insurance, the limits you buy of liability coverage policy serve two basic purposes.
First, if you are the cause an accident, then the limits of insurance protect your personal assets. If the amount of the damage or injury you cause is greater than the limit on your policy, then after your insurance company pays the limits then you are personally responsible for the amount greater than that limit. A person you injured in an accident could sue you and get a significant monetary judgment. So, by purchasing auto insurance with a higher limit you can protect your assets.
The second purpose for having a sufficiently high insurance policy limit is because, under Virginia law, you automatically have an equal limit of “uninsured motorist” and “underinsured motorist” coverage. This is to your advantage; if you, a family member who lives in your household, or a passenger in your car is injured, and the person who causes the injury has no insurance or a limit less than yours, then your own company will pay up to the difference. For example, if you have a policy with limits of $100,000 and are seriously injured, and the person causing your injuries only has a policy with the minimum limits of $25,000, the at fault driver’s company would pay their $25,000 and then your company would pay up to the difference (that is, up to $75,000 more) to equal the limit you have of $100,000. So higher insurance policy limits not only protect you and your assets, they also protect you and your family against a driver who has no insurance or not enough insurance.
Have you been in an accident? At Kalfus & Nachman PC, we’ve helped thousands of clients by providing them with aggressive, competent legal support. We are dedicated to fighting for full compensation for victims and we never back down from problematic or complex cases. No matter what you are up against, our attorneys can evaluate the circumstances of your bus accident injury and provide a custom plan of action to meet your specific needs.