Every policy has a level of liability coverage in auto insurance, or a degree to which the company will pay for costs arising from damages to your vehicle. Generally, the higher an auto insurance policy's level of coverage, the higher the insurance company must charge to continue making profits. This means that, in order to get the best coverage, you must pay more. So you need to find a balance between the price of insurance and its level of liability coverage. You don't want to spend too little on a policy with very little liability coverage, because then you might end up paying even more in liability costs. However, you also don't want to spend too much on a policy that provides more coverage than you need.
How Much Liability Coverage You Need
Every state has its own laws about the required amount of liability coverage that you must have to drive, but they all have a minimum amount. Beyond the legal minimum, the degree to which you want to be protected by auto insurance is entirely your choice. Generally, people with more valuable cars get more liability coverage because damages to their car will cost more to fix, while people with less valuable cars do not need so much coverage. Also, you should consider where you live. People who drive in big cities and other places with a lot of traffic are usually recommended to get more liability coverage. This is because it is more likely for people in a lot of traffic to have an accident. If you are prone to accidents, you should get a higher level of liability coverage. But if you rarely have car accidents, then you may not need so much.