Most states now require every driver to carry liability insurance; however, the minimum requirements vary from state to state. The majority of states require no more than 20/40/10(many require only 10/20/10), meaning if you are liable for an accident, the other party may collect no more than the single bodily injury limit (for one person) of $20,000.00 and no more than the limit of $40,000.00 for all injuries sustained to the innocent parties. The last 10,000.00 listed is for the property damage sustained by the innocent party (Have you seen many cars repaired or valued at $10,000.00 recently?).

Have you looked at a hospital bill lately?

Let's suppose you are on your way back from working the midnight shift at the local hospital or the local plant. You know you are very tired, but feel certain you will make it home safely. Unfortunately, you fall asleep behind the wheel and go left-of-center, hitting another vehicle head-on. There are four teenagers in that vehicle; the passenger in the front seat and one of the passengers in the back seat are killed instantly. The driver sustains somewhat minor inuries and the other passenger is admitted to ICU after emergency surgery to repair internal organ damage.

Will $20,000.00 be enough to settle the injury claim of either or both of the now deceased teenagers? If both families are paid the $20,000.00 limits and actually agree to sign a release on your behalf, what is left for the other two injured teenagers?

In reality, if you have the BEST liabilty limits of 100/300/100, will $300,000.00 be enough to pay for the two death claims, the teenager's claim who is seriously injured and in ICU AND the driver who has some claim also, even if it is minor, in comparison to the other occupants' of the vehicle?

The REAL question is "DO YOU HAVE ANY ASSETTS?". "ANY" is the important word in the above sentence. If you do OR if you do not want to be in a position to prove the value of those assetts or the absence of assetts, you should consider purchasing an umbrella policy, which would (generally) protect you up to one million dollars and includes liability protection for automobile and homeowners claims. Most umbrella policies are fairly inexpensive: approximately $25 per month, depending on your circumstances.

An umbrella policy is probably the BEST way to avoid litigation AND offer you REAL protection in a society that often seeks an apportunity to collect "free" money. Most important, however, an umbrella policy is the protection you NEED should you ever find yourself in a position where your negligence has caused injury to another--a position NONE of us like to be in, but one that is common---obviously, since that is the sole reason insurance ever became such a necessary "evil" in our society.