How do I know which is the right policy for my family and me?

Transcript:

So a lot of people ask, “What kind of coverage should I have?  What’s the right amount?”  It’s important to understand that an accident can happen to anyone, rich or poor, and it can be financially devastating. So having good coverage is important to the financial stability of you and your family. To the extent you can afford to have higher coverage, you should. It’s really a matter of your family budget.

I would say that some people who are very wealthy will almost always want to have much higher limits because if they don’t and there’s a large claim brought against them, they’re very likely to be subject to an additional claim for damages over and above their insurance limits.

Persons of lesser means often can be protected by the insurance limits that they have available. So for example, in the liability area, persons of lesser means might think that they could have lower limits and not be too concerned about it because someone who is injured and has a larger claim may be less likely to pursue anything other than their insurance because they know in the end they would just force them into bankruptcy and it wouldn’t do anyone any good.

That’s a serious risk though and a reason why people should have more coverage because you don’t wanna put yourself in that position.