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.
- 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.)
- 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.