Are state minimum limits enough when it comes to your auto insurance?

Most states mandate that you carry automobile insurance and that you carry a minimum amount of liability insurance. In Nevada, that amount is now 25/50/25. What does that mean? Let's break it down. 

• $25,000 for injuries to one person in an accident
• $50,000 for all injuries in an accident
• $25,000 for property damage in one accident

Keep in mind, this doesn't apply to YOUR vehicle (that's what comprehensive, collision and medical payments coverage is for). 
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Let's say you cause an accident with another vehicle that has a passenger as well as the driver and they're both injured. The drivers injuries total $60,000. The passengers injuries total 10,000.  If you have the fore-mentioned liability limits, the driver would only receive $25,000 to pay for his injuries and the passenger, just the $10,000.

So how does the driver recoup the remaining $35,000?  The other party could come after you personally. You might have to take out loans or extra mortgages, have your wages garnished, all of which could put you in debt. You might have to sell off your assets—or a collector could take your assets from you forcibly. The DMV might even suspend your license until you’re able to pay. 
All of this could have been avoided if you had chosen the higher liability limits that your insurance agent recommends.  Minimum limits are not recommended and I hope that this illustration helps you understand why. 

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