how much coverage for car insurance

Question

OAthena · Accepted Answer

The right amount of car insurance coverage isn't a one-size-fits-all number; it's a balance between your state's legal minimums, your financial assets, and the value of your vehicle. For most drivers, carrying only the minimum required liability coverage is a significant financial risk. A robust policy typically includes higher liability limits, comprehensive and collision coverage if your car is financed or valuable, and uninsured motorist protection.

Understanding Core Coverage Types

Bodily Injury Liability (BI) per person / per accident
Property Damage Liability (PD) per accident
Uninsured/Underinsured Motorist (UM/UIM)
Comprehensive & Collision (Optional)
Medical Payments (MedPay) / Personal Injury Protection (PIP)

Recommended Coverage Levels

Coverage Type	Minimum (Risky)	Recommended (Good)	High-Asset (Excellent)	Notes
Bodily Injury Liability	25/50	100/300	250/500	Covers others' injuries you cause. 100/300 = $100k per person, $300k per accident.
Property Damage Liability	25,000	100,000	250,000	Covers damage you cause to others' property (cars, fences, etc.).
Uninsured/Underinsured Motorist	Varies by state	100/300	250/500	Protects you if hit by a driver with little or no insurance.
Comprehensive & Collision	Not required	Carry if car is new, leased, or valuable	Carry if car is new, leased, or valuable	Pays for damage to your own car. Choose a deductible you can afford ($500-$1,000 is common).
Medical Payments (MedPay)/PIP	Varies by state	$5,000 - $10,000	$10,000+	Covers medical expenses for you and your passengers regardless of fault.

Your need for comprehensive and collision coverage depends heavily on your car's current value. If your car is older and worth less than a few thousand dollars, paying for these coverages might cost more than you'd ever get back in a claim. You can check your car's value using resources like Kelley Blue Book (KBB) or the National Automobile Dealers Association (NADA) guide.

Ultimately, the goal is to have enough coverage so that a single accident doesn't lead to financial ruin. If you have significant savings, a home, or other assets, higher liability limits are non-negotiable to protect those assets from being seized in a lawsuit.

DeCorbin · Answer

Think of it as protecting your wallet. State minimums are often way too low. If you cause a serious accident, you're personally on the hook for anything over your policy's limit. I made sure my liability is at least 100/300/100. Also, don't skip uninsured motorist coverage—there are a lot of drivers out there with no insurance. If your car is paid off and not worth much, you might drop comprehensive and collision to save money.

RyanMarie · Answer

As a recent buyer, my agent explained it in terms of my car loan. The bank required full coverage, meaning comprehensive and collision, until I own it outright. Beyond that, she emphasized liability. The key question was, "How much of your savings could you lose in a lawsuit?" I opted for 250/500 liability because I have a house. It cost a bit more monthly, but the peace of mind is worth it.

TaylorMarie · Answer

It's all about risk management. First, know your state's absolute minimums, but view them as a starting point. Then, assess your own financial exposure. If you have assets to protect, you need liability limits high enough to shield them. For your vehicle, the decision on comprehensive and collision is an economic one: if the annual premium plus your deductible is close to the car's cash value, it may not be worth it.

BrantleyFitz · Answer

My cousin was in a bad crash years ago, and the other driver had the bare minimum insurance. It wasn't nearly enough to cover his medical bills. After seeing that, I always max out my uninsured motorist coverage. I also review my policy every year when I renew my registration. Life changes—a new car, a pay raise, a teen driver—all affect how much coverage you really need. Don't just auto-renew without thinking about it.