1. You are required by law to have liability insurance: basically, this protects people from going after your assets (house, savings, etc.) if you're found at fault for an accident.
2. The minimum liability amounts are very low, $5,000 for property damage (fixing/replacing the vehicle of the other involved), $15,000 per person injured (covers their medical expenses), BUT only a total of $30,000 in medical expenses for those covered (e.g., if a whole family is injured in an accident and their medical expenses are $100,000, your insurance company only gives them the $30,000).
3. With the above info in mind, the minimum liability insurance is definitely lacking. There is more coverage available such as:a. Physical Damage: whether its collision or comprehensive, your vehicle will be covered no matter whose fault an accident is.
b. Uninsured/Under-insured Motorist: protects you from those people who have no insurance or whose coverage is insufficient to cover all the damage
c. Medical Payments: again, no matter whose fault the accident is, medical expenses will be covered
d. Riders: you can add coverage to your policy for any "extras" like an expensive after-market stereo & speakers
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