How Much Car Insurance Do I Need?
Liability coverage protects the people and property you damage — not you. A common rule of thumb is to carry enough liability coverage to cover your net worth plus a year of income, so a serious at-fault accident does not wipe out your savings. Enter your figures to see a suggested tier.
How Much Car Insurance Do I Need?
How this works
Bodily injury liability pays for injuries you cause to other people; property damage liability pays for the property you damage. Both have per-person and per-accident limits, usually written as three numbers such as 100/300/100 — per-person bodily injury, per-accident bodily injury, and property damage.
This tool uses a widely cited rule of thumb: carry enough liability coverage to protect your net worth plus roughly one year of income, because a serious at-fault accident can lead to a judgment against your assets and future earnings.
It then rounds your exposure up to the next common coverage tier (25/50, 50/100, 100/300, or 250/500). It does not account for state-specific rules, umbrella policies, or business exposure — treat it as a starting point for a conversation with a licensed agent.
Frequently asked questions
What do the numbers like 100/300/100 mean?
They are liability limits in thousands: $100,000 per person for bodily injury, $300,000 per accident for bodily injury, and $100,000 for property damage. Higher limits cost more but protect more of your assets.
Is the state minimum enough?
Usually not. State minimums are the least you can legally carry, and they are often far below the cost of a serious injury. They do not protect your own assets once they are exhausted.
Does this include collision and comprehensive?
No. This tool only estimates liability limits. Collision and comprehensive coverage protect your own vehicle and are usually required by lenders or lessors.
Should I add an umbrella policy?
If your net worth is well above the top tiers shown here, a personal umbrella policy can add $1 million or more of liability protection for relatively little. Ask an agent whether it fits.
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