How Much Auto Insurance Coverage Is Recommended?

Buy enough liability to protect your income and savings, then add collision/comprehensive based on the car's value. State minimums keep you legal. They rarely keep you whole after a serious crash.

A practical starting point

Many independent advisors point to 100/300/100 as a solid default in the U.S.: $100,000 bodily injury per person, $300,000 per accident, $100,000 property damage. If you own a home or have significant savings, consider a $1 million personal umbrella on top of auto and home.

Use the coverage needs calculator to pressure-test that number for your household.

Match coverage to the asset

• Financed/leased car: collision + comprehensive until the loan is gone.
• Paid-off car worth little: liability (higher than minimum) may be enough; collision can cost more than the car.
• Medical: in no-fault states, PIP is required; elsewhere, health insurance + uninsured motorist matter a lot.

Don't copy a friend's limits

A renter with no savings and a 15-year-old Civic is not the same as a homeowner with two teens. California and Florida also have unique minimum structures - see California and Florida.

Deductibles

Pick a collision deductible you could pay this week from savings - often $500 or $1,000. Higher deductible lowers the premium. Details: $500 vs $1,000 deductibles.