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In another example of how lawsuit-happy that society has become, experts now recommend that it would be wise for individuals to increase their auto coverage to indemnity limits similar to, if not higher than, home insurance indemnity.

A normal homeowner’s policy has approximately $100,000 up to $300,000 in liability coverage. Conversely, the industry norm for car insurance policies has been around $100,000 per person injury coverage, $300,000 per accident in bodily injury, and about $50,000 in property damage coverage per incident.

These allowances might not be enough, though, even for the average person. According to Madelyn Flannagan, who vice president of agent development, research and education with the IIABA (Independent Insurance Agents and Brokers of America), “People today have become so litigious they’re suing for everything,” says Ms. Flannagan. “You’re going to need to look at an umbrella policy that covers homeowners and your auto.”

Standard liability limits on a car insurance policy will quickly run out in the case of a multi-car accident, says Amy Danise, senior managing editor of Insure.com. “If you cause a massive car accident and are sued for damages, then your umbrella can also kick in there to cover you. Damages can add up quickly if a person is trying to sue you for hospital bills, lost wages — it’s an astronomical amount. That’s a great place where umbrella coverage comes in for the liability not covered, at not much extra cost.”

An umbrella policy doesn’t have to kill a person’s budget. These kind of policies add more protection than home and car policy limitations, such as $1 million worth of personal liability coverage, and for as little as $$150 to $300 extra per year. For an additional million dollars of coverage, it would be another $75, and only $50 more for every million dollars’ worth of extra coverage over that, according to the Insurance Information Institute.

“It’s better to have and not need, than need and not have,” quips Mike Jacobs, 55, from Alexandria, VA; he has a $1 million personal umbrella policy as an extension of his home and car comprehensive liability policies. “I can’t afford to be sued and be wiped out.”

“Ultimately most people forget about the umbrella,” says Tim Hogan, who heads up the elite services division for Alper Services, an insurance and consulting services company.

This kind of coverage isn’t just for the rich and famous, because anyone can be a target for a lawsuit, especially regarding car accidents. Fraudulent auto insurance claims are skyrocketing, according to industry and government officials, despite the best efforts of all involved to cap these activities. Depending on the kind of lawsuit, even retirement funds could be targets for litigation. You never know what could happen, they warn, so it is best to be covered.

As well as looking into umbrella policies to augment home and auto insurance policies, individuals should also check into specialist insurance companies to add additional liability and property coverage, such as for their car, into their home insurance policies. This doesn’t have to be expensive, though.

Ross Buchmueller, who is president/CEO of PURE (Privilege Underwriters Reciprocal Exchange), which is owned by its members and is considered as a high-value insurer, say, “Consumers believe that you have to pay more to get quality. The insurance business is relatively unique in that if you do everything right … your premiums should be kept low.”