Auto Insurance Claims: Liability Limits, bodily injury liability, uninsured motorist coverage

Question
I am trying to determine how much liability insurance I need.  
Can your salary/future earnings be attached/garnished?
Is it true that IRAs, 401ks, etc are held in trust and can not be taken by a lawsuit?
Is it true that real property (my house), bank accounts and mutual funds held jointly can not be taken by a lawsuit when the car is in one person’s name?  

Answer
Hi Jim,

Your question is legal in nature and varies from state to state, but here are some basics.

If you have assest that you are concerned about loosing, you should purchase as much coverage as possible. A general rule would be to purchase Bodily injury liability insurance of at least 100/300. That means the coverage would pay upto $100,000.00 for each person to a maximum of $300,000.00 per accident, for injuries that you cause to others. Then you should carry a property damage liability limit of at least $50,000.00 for damage to the property of others that you cause. If you have assets greater than these amounts, you may also want to consider an umbrella policy that provides excess coverage in addition to your auto and home owners policies. Usually an umbrella policy can be purchased for $1,000,000.00 for about $200.00 to $300.00 per year in premium.  Also don't forget about uninsured motorist coverage. This is coverage that protects you from others who do not have insurance or do not have enough coverage to pay for all of the damage or injuries that they may cause to you.

I hope this helps
Richard Hixenbaugh