[MRM]

You can't protect yourself any way except with high limits. It's actually pretty cheap to do as Gaijin explains. The easiest way to do it is to get basic liability coverage and add a million dollar or so umbrella. The best coverage and best value in the world.

This is very important: You need the high limits to protect yourself in case you get hit by a driver who doesn't have coverage. If you get an umbrella policy, make sure it has uninsured and underinsured motorist coverage. That means that if an uninsured or lightly insured drunk hits you, your own coverage will pay for the damage he caused. For that reason alone I have a $2 million umbrella on top of my underlying coverage.

Finally, the higher limits can actually decrease the settlement value of your case. The calculation goes like this. In most states, if the plaintiff asks for your policy limits or less, but your insurance company turns them down, the insurance company is on the hook if the plaintiff gets a verdict against you for more than your limits. So if you have $30,000 or even $50,000 or $100,000 limits, even a minor accident carries some risk to the insurance company that they will be responsible for an excess verdict. So with the lower policy limits, there is an incentive to pay more in proportion to the insurance coverage to prevent an excess verdict. But if you have a larger policy, like a million dollar umbrella, all but the most serious accidents will fall under your limits even if there is a run away jury. So the insurance company can take a much harder line and settle the claim for what it is worth if you have high enough limits.