Short answer: YES.

And besides, most states require that you have liability insurance. As a matter of fact, the state of California has set minimum auto liability insurance requirements that must be met by drivers in order to comply with the law. Drivers must carry at least

• $15K personal injury/death to one person
• $30K for injury/death to more than one person
• $5K for damage to property

 
But to step back on what liability is, if you are ever in a situation where you are found at fault or sued, it’s your liability insurance that will safeguard everything you have worked for. On your auto insurance, the liability section is comprised of two different sections: bodily injury and property damage.

1. Bodily injury  protects you in the event you’re involved in an accident that is your fault and someone is injured. Your auto insurance policy will cover the expenses up to the policy limit ($15k, $25k, $100k, $500k, etc.)
2. Property damage protects you in the event you damage someone else’s vehicle in an accident, municipal property, or any other “property.” Typically, this amount is lower than the bodily injury coverage.

 A typical example of liability coverage on an auto policy will look like this:

15/30/5 (California legal minimum), 25/50/25, 100/300/50, 500/500/100.

15= The policy will only pay up to $15k for one person’s injury.
 
30= If more than one person is injured, the policy will not pay out more than $30k collectively for the injuries.
5= The policy will pay up to $5k for property damage coverage.
 

You might be thinking that liability insurance isn’t for you, especially if you’re young, don’t have a huge net worth, or a high-paying job. However, in the state of California, it is imperative that everyone is protected, and here is why:

Should an accident occur and someone is hurt, your auto insurance will cover the damages, but what about the medical bills? Liability insurance can cover it. Not to mention, liability insurance is helpful even in situations where you might not think you’re to blame. Having liability insurance will protect you from paying out of pocket.

For Liability, we recommend the maximum protection. You should have a policy that will cover at least the amount of your net worth, because the state of California can go after your future earnings.