Let's look at the coverage offered by auto insurance. Well, that depends on how much you have to lose. How much do you need? Liability Coverage: This is coverage for when someone sues you. Although states have different laws governing the form of auto insurance written, the basics of what to look for and what to think about are the same. At this point, the attorney will probably find out what liability limits the at-fault driver (you) have on your insurance policy If the limits are high enough, that is probably all the injured person will sue for. On the other hand, if you have a nice home and good bank account, the amount sought could be a big number. It does no good to sue someone for millions if the person only has $100. The driver's attorney will need to calculate the monetary damage, but will also look at what assets you have. The driver of the other car is hurt pretty badly and he or she decides to sue you. Picture yourself getting in an accident and it was your fault.