Often when purchasing an auto policy people are looking for ways to save money in the wrong places, such as the liability section in your auto policy. The state of Michigan only requires you to carry 20/40/10 limits, which are $20,000 per person/$40,000 per occurrence/$10,000 property damage. However, this could end up costing you everything you own plus more. For example, if you are deemed at fault in an auto collision and have caused bodily injury to others in the other vehicle they can come back and sue you. And in these days and times, $20,000 is not going to cover it.
What is likely to happen is your insurance company will just cut the check for the policy limit and walk away, leaving you with no defense. So after that, where do you think the rest of the settlement money will be coming from? Your bank accounts and assets. As a general rule of thumb 100/300/100 is as low on your auto liability limits as you would ever want to go. Also, you can increase your automobile liability limits to 500/500/500 and home liability to $500,000 and once you do that, often you can purchase a $1 Million Umbrella Policy which is an additional $1 Million of liability coverage on top of you home and auto coverage, often with no extra cost because of the Umbrella Multi-Policy Discount.