By law, when driving a motor vehicle, you must have a minimum amount of auto insurance liability coverage. This coverage protects and covers you against any damage you cause, or any injury you cause. The insurance company will pay the damages, up to a limit, which is dependant on your policy. The lowest that this limit can be varies by your state/province, and you must at least have this as your minimum liability coverage. There is no minimum amount of comprehensive or collision coverage that is required.
In most cases this limit may be too small to cover all damages that could conceivably occur. If the damages exceed your liability amount, then you are personally responsible to pay the remainder of this amount!
It is a good idea, to increase your maximum liability from the government set minimum. This may raise your premium, but the benefit of not having to worry about paying any damages if they exceed your minimum far outweigh the negative.
Liability coverage will cover medical expenses and property damage to other motorists, and will not cover injuries to you. To have your medical expenses covered you will need some form of medical insurance. For information on medical insurance head to http://www.unicare.us
Below is a list of all the government set minimum liability coverage’s for Canada and the United States, along with some information on the maximum amount of pay-outs for certain damages: