How Much Coverage Do I Need?

Buying only the "State Minimum" is a financial death trap. If you have assets (a house, savings, or future wages), you need to protect them.

The Dangerous "State Minimums"

Most states require very low liability limits (e.g., $25,000 for bodily injury). In 2025, a single night in the ER can cost more than $25,000.

What happens if you run out? If you cause an accident and the damages exceed your insurance limit, you are personally sued for the rest. They can garnish your wages and seize your bank accounts.

The Golden Rule: 100/300/100

For most middle-class drivers, insurance experts recommend the 100/300/100 level of coverage:

Bodily (Per Person)

$100,000

Pays for one person's medical bills.

Bodily (Per Accident)

$300,000

Total pot for everyone injured.

Property Damage

$100,000

Pays for the car you hit.

Why $100k for Property Damage? Because if you hit a Tesla or a bright new pickup truck, a $25k limit won't cover the replacement cost.

Do I Need More?

Use the "Net Worth Rule": Your liability coverage should roughly match your total net worth. If you own a $500,000 home and have $200,000 in savings, a 100/300 policy isn't enough. You are a target.

The Umbrella Policy Solution

If you need more than $500k in coverage, don't just increase your auto limits. Buy an Umbrella Policy. It sits on top of your home and auto insurance and provides $1 Million+ in extra coverage for usually just $200-$300 per year. It is the cheapest way to buy massive peace of mind.

Talk to an Expert

Don't guess with your financial future. Let a licensed agent review your assets.

Get a Coverage Review