What is Liability Coverage?

Liability means responsibility. If someone makes a claim against you in which they claim that you were responsible or at fault for the accident, you need to protect yourself so that you don’t have to pay money to someone else. So you purchase liability insurance. The limits that you purchase or what your insurance company will pay to someone else who makes a claim against you - that’s liability insurance. Now, New Jersey law requires you to cut-carry only fifteen thousand dollars worth of liability insurance. That’s clearly inadequate if someone was involved in an accident and made a claim against you because their claim may vary well exceed that, and you may find that they will make a claim against you directly to pay those damages. So, most people in New Jersey preferred to have either a hundred or three hundred thousand dollars worth of insurance. What I recommend for your own benefit and to protect your family and your family’s assets is five hundred thousand dollars of single limit liability insurance.