- ✓State minimums keep you legal but rarely protect your assets.
- ✓100/300/100 liability limits are a sensible floor for most drivers.
- ✓Uninsured motorist coverage is cheap and often essential.
- ✓Match your limits to what you could lose, then compare at those limits.
Buy too little coverage and one serious accident can wipe out your savings. Buy blindly and you overpay for years. The right amount sits between those extremes, and it is easier to find than most drivers think. Here is a framework for sizing coverage to your actual risk.
Start above the state minimum
State minimum liability is designed to be legal, not to protect you. A single at-fault injury claim can run well past a 25,000 dollar minimum, and anything above your limit comes out of your own pocket, including your wages and assets.
| Tier | Limits | Best for |
|---|---|---|
| State minimum | 25/50/25 or lower | Legal compliance only |
| Moderate | 50/100/50 | Older cars, limited assets |
| Recommended | 100/300/100 | Most drivers and households |
| High | 250/500/100 | Higher income or assets to protect |
Format is bodily injury per person / per accident / property damage.
The add-ons worth considering
Beyond liability, a few coverages are worth their cost for most drivers. Weigh these based on your car, your finances, and where you live.
- ✓Uninsured and underinsured motorist: cheap, and vital where many drivers carry no insurance
- ✓Collision and comprehensive: if you finance, lease, or could not easily replace the car
- ✓Medical payments or PIP: helps cover your own medical bills quickly, regardless of fault
- ✓Gap insurance: if you owe more on the loan than the car is worth
- ✓Rental reimbursement and roadside: small add-ons that pay off in the moment
“Think about what you could actually lose, not just what is legal. If an accident could put your savings or home at risk, your liability limits are the cheapest insurance you will ever buy against that.”
Frequently asked questions
Rarely. They keep you legal but can leave you personally liable after a serious accident. Higher liability limits are usually inexpensive relative to the protection.
