In general,which of the following is true regarding the amount of liability insurance you should carry?
A)It should never be greater than your state's minimum.
B)It should be inversely proportional to your net worth.
C)The greater your assets,the more coverage you should carry.
D)None of the above are correct.

Question

Quizplus · Accepted Answer

The greater your assets, the more coverage you should carry. This is because if you cause an accident and are found liable, those with more assets are at greater risk of losing them in a lawsuit. Therefore, it is wise to have enough liability insurance to protect your assets in the event of a judgment against you. Option A is incorrect because minimum state requirements may not be enough to cover all damages, leaving you financially responsible for the rest. Option B is incorrect as it does not take into account the potential damages you could be responsible for if you are found liable in an accident.

In General,which of the Following Is True Regarding the Amount