How Can I Get More Liability Insurance? A Complete Guide to Protecting Your Financial Future

Liability insurance isn’t just a line item on your policy — it’s your financial safety net when things go sideways. Imagine a serious accident where someone sues you for medical bills or property damage. Without enough liability coverage, you could be paying out of pocket — potentially hundreds of thousands of dollars or more. So, how do you make sure you’re truly covered? Let’s dive in.

Why Liability Limits Matter More Than You Think

Many people stick with their insurer’s default liability limits—often the bare minimum required by the state. But those minimums might cover a minor fender-bender, not a catastrophic event like a major car crash or an accident on your property.

For example, a severe car accident with multiple injuries can easily lead to lawsuits demanding $500,000 or even $1 million. If your policy only covers $100,000, guess who’s on the hook for the rest? You.

Step 1: Know Your Starting Point — What Does Your Current Policy Say?

Before you ask your insurer to increase limits, pull out your declarations page and see exactly what limits you have. Auto policies will usually show something like:

• $100,000 per person for bodily injury

• $300,000 per accident bodily injury total

• $50,000 property damage

Homeowners policies often have a separate liability limit—usually $100,000 or $300,000.

Step 2: Ask Your Agent to Raise Your Limits — It’s Easier Than You Think

Most insurers offer a range of liability limits. Moving from $100,000 to $250,000 per person, or even $500,000, might only increase your premium by a few dollars a month — a small price for potentially huge peace of mind.

If you want to play it really safe, bumping your liability limits up to $1 million is often doable without breaking the bank.

Step 3: Consider an Umbrella Policy — Your Financial Superhero

If you have assets like a home, savings, or investments, an umbrella policy acts like a supercharged shield. It covers liability claims above and beyond your existing policies’ limits.

Umbrella policies typically start at $1 million in coverage and can go much higher, often for just a few hundred dollars more a year.

Step 4: Think About Your Lifestyle and Risks

Do you frequently host parties? Own a pool? Drive a teenager? Rent out property on Airbnb? These factors ramp up your liability risk.

Higher limits or umbrella policies become even more critical if you want to protect your family and your finances from an unexpected lawsuit.

Step 5: Shop Around and Bundle

Insurance companies price liability differently. Get quotes from several providers to ensure you’re not overpaying.

Also, bundling your auto and homeowners policies often scores you discounts and simplifies the process of increasing liability across the board.

Real-World Impact

Picture this: You’re in a car accident where the other driver has massive medical bills. Your insurance covers up to your liability limits, but the bills exceed that. The driver sues you personally for the difference.

Without sufficient liability insurance or an umbrella policy, your savings, home, or future income could be at risk. That’s why having enough coverage isn’t just smart — it’s essential.

Bottom Line: Don’t Gamble with Your Protection

Liability insurance protects more than just your car or home — it shields your financial future. Raising your limits or adding an umbrella policy is a small monthly investment for massive peace of mind.