how much car insurance coverage do i need

[AvaLee]

Determining how much car insurance you need involves balancing legal requirements with your personal financial protection. At a minimum, you must carry your state's required liability coverage. However, most financial advisors strongly recommend going far beyond these minimums to protect your assets. A common and robust recommendation is 100/300/100 coverage: $100,000 per person for bodily injury, $300,000 per accident, and $100,000 for property damage. You should also strongly consider uninsured/underinsured motorist coverage and comprehensive and collision if your vehicle is financed or valuable.

Simply meeting your state's minimum can be a significant financial risk. For example, if you cause a serious accident with medical bills totaling $150,000 but only have a state-minimum limit of $25,000, you could be personally sued for the remaining $125,000. Adequate liability insurance acts as a shield for your savings, home, and future income.

Your specific needs depend on several key factors:

• Assets and Income: The more you own and earn, the higher your liability limits should be to protect against lawsuits.
• Vehicle Value: If your car is new or expensive, comprehensive and collision coverage are essential. For an older, low-value car, you might consider dropping these to save money.
• Driving Habits and Location: Long commutes in high-traffic areas increase your risk of an accident, warranting more robust coverage.

State	Minimum Bodily Injury Liability (Per Person/Per Accident)	Minimum Property Damage Liability	Recommended Minimum Coverage (100/300/100)
California	$15,000 / $30,000	$5,000	Highly Inadequate
Texas	$30,000 / $60,000	$25,000	Strongly Recommended
Florida*	$0 (PIP Required)	$10,000	Essential
New York	$25,000 / $50,000	$10,000	Strongly Recommended
Illinois	$25,000 / $50,000	$20,000	Strongly Recommended
Arizona	$25,000 / $50,000	$15,000	Strongly Recommended
*Florida is a "no-fault" state, which has different requirements.

Ultimately, the best practice is to purchase the highest amount of liability coverage you can comfortably afford. It’s a critical component of your financial safety net.

[TheoRose]

Don't just get the legal minimum—it's barely enough to cover a fender bender. If you cause a serious accident, you could be on the hook for tens of thousands of dollars out of your own pocket. Think about what you own: your savings, your house. You need enough insurance to protect all of that. A good starting point is 100/300/100. It costs a bit more each month, but it’s cheap compared to financial ruin.

[AlexandraDella]

I learned this the hard way after a minor at-fault accident. My state's minimum coverage felt like enough until I saw the other driver's repair bill. I was lucky it wasn't worse. Now, I carry much higher liability limits. My advice is to look at your policy's liability numbers and ask yourself: "If I totaled a new luxury SUV and injured the driver, would this cover it?" If the answer is no, you're underinsured. It's about peace of mind.

[LorenzoMarie]

My main focus was protecting my family. We have a house and are saving for our kids' college. So when we renewed our auto policy, we maxed out the liability limits. We also made sure our uninsured motorist coverage was strong, because you can't control who hits you. For our newer minivan, we keep full comp and collision. It's not just about the car; it's about ensuring an accident doesn't derail our family's entire financial future.

[DiAmy]

I drive an old, paid-off sedan, so my approach is practical. I skip comprehensive and collision because the car's value is low—replacing it wouldn't break the bank. However, I have high liability limits. That's the important part. If I accidentally hit someone else's expensive car or cause an injury, I'm covered. I'm not risking my savings over an old beater. So, focus your money on liability; it protects you from the big, unpredictable costs.