CarInsurance.com Insights
- Most drivers should purchase full coverage car insurance with liability limits of 100/300/100.
- If you don’t purchase adequate liability insurance coverage, you’ll be legally liable for any damages beyond your policy’s liability limits.
- The average annual rate for full coverage with limits of 100/300/100 and a $500 deductible is $2,513.
If you’re wondering how much car insurance you need, the short answer is that you need the minimum car insurance required by your state to drive legally. Insurance is required in most states, so learn about your state’s car insurance minimum requirements.
But the state minimum is rarely enough to protect your finances in case of a costly accident. Keep reading to find out more about recommended car insurance coverage.
Use the tool below to see how much auto insurance you need.
How much car insurance do I need?
See recommended coverage levels for drivers like you.State Laws & Minimum Coverage
What is the minimum car insurance you must have?
Insurance is required in every state except New Hampshire, so learn about your state’s minimum car insurance requirements.
In most states, the minimum liability required by your state is not enough to pay for serious injuries or to replace a newer car — it is only enough to drive legally.
“With today’s medical costs and vehicle repair costs skyrocketing, choosing higher limits will protect your assets and decrease the potential of out-of-pocket expenses in case of an accident,” says Ashleigh Trent, personal lines director and co-founder of TowerStreetInsurance.com.
See the minimum liability limits in each state in the table below.
| State | Minimum liability coverage limits | Other insurance required (if any) |
|---|---|---|
| Alabama | 25/50/25 | |
| Alaska | 50/100/25 | |
| Arizona | 25/50/15 | |
| Arkansas | 25/50/25 | |
| California | 30/60/15 | |
| Colorado | 25/50/15 | |
| Connecticut | 25/50/25 | UM/UIM |
| Delaware | 25/50/10 | PIP |
| District of Columbia | 25/50/10 | UM, UMPD |
| Florida* | 0/0/10 | PIP |
| Georgia | 25/50/25 | |
| Hawaii | 20/40/10 | PIP |
| Idaho | 20/50/15 | |
| Illinois | 25/50/20 | UM |
| Indiana | 25/50/25 | UM/UIM |
| Iowa | 20/40/15 | |
| Kansas | 25/50/25 | UM/UIM, PIP |
| Kentucky | 25/50/25 | PIP |
| Louisiana | 15/30/25 | |
| Maine | 50/100/25 | UM/UIM, MedPay |
| Maryland***** | 30/60/15 | UM/UIM, UMPD, PIP |
| Massachusetts | 20/40/5 | UM, PIP |
| Michigan | 20/40/10 | PIP, PPI |
| Minnesota | 30/60/10 | UM/UIM, PIP |
| Mississippi | 25/50/25 | |
| Missouri | 25/50/25 | UM |
| Montana | 25/50/20 | |
| Nebraska | 25/50/25 | UM/UIM |
| Nevada | 25/50/20 | |
| New Hampshire** | 25/50/25 | UM/UIM, MedPay |
| New Jersey****** | 15/30/5 | UM/UIM, PIP |
| New Mexico | 25/50/10 | |
| New York | 25/50/10 | UM, PIP |
| North Carolina | 30/60/25 | UM, UIM |
| North Dakota | 25/50/25 | UM/UIM, PIP |
| Ohio | 25/50/25 | |
| Oklahoma | 25/50/25 | |
| Oregon | 25/50/20 | UM, PIP |
| Pennsylvania | 15/30/5 | PIP (First Party Benefits) |
| Rhode Island*** | 25/50/25 | |
| South Carolina | 25/50/25 | UM, UMPD |
| South Dakota | 25/50/25 | UM/UIM |
| Tennessee | 25/50/25 | |
| Texas | 30/60/25 | |
| Utah | 30/65/25 | PIP |
| Vermont | 25/50/10 | UM/UIM, UMPD |
| Virginia | 50/100/25 | UM/UIM, UMPD |
| Washington | 25/50/10 | |
| West Virginia | 25/50/25 | UM, UMPD |
| Wisconsin | 25/50/10 | UM, UIM, MedPay |
| Wyoming | 25/50/20 |
How much liability insurance should you buy?
CarInsurance.com editors recommend that most drivers have liability limits of 100/300/100 with full coverage. These limits provide you with protection within the following amounts:
- Up to $100,000 to repair other drivers’ vehicles and property that you damage.
- Up to $100,000 per person per accident
- Bodily injury liability of up to $300,000 per accident
“A common recommendation is to carry liability coverage of at least 100/300/100, meaning $100,000 per person for injuries, $300,000 total per accident, and $100,000 for property damage,” Trent says. “Although higher levels of protection such as 250/500/100 or $500K Combined Single Limit (CSL) are typically needed to meet the minimum requirements of an umbrella or excess liability policy.”
Below are a few different liability limit options.
State-minimum liability limits
This is the smallest amount of coverage your state will allow you to purchase to operate legally on public roadways. State-minimum liability coverage is not generally recommended.
Liability-only coverage limits of 50/100/50
Best for drivers who want to meet solid coverage standards without full coverage costs who:
- Want to go beyond state minimums for better protection without high premiums
- Drive older or low-value cars that aren’t worth repairing after a crash
- Own their vehicle outright (no loan or lease requirements)
- Have a stable financial situation and can afford to replace their car out of pocket
- Live in low-traffic or rural areas with fewer accident risks
Liability limits of 100/300/100
A balanced choice for most U.S. drivers., especially those who:
- Live in suburban or urban areas where accidents and theft are more likely
- Drive newer or moderately priced vehicles that would be expensive to repair or replace
- Finance or lease their vehicle (required by lenders)
- Want peace of mind from collision and comprehensive protection
- Have some assets or savings worth protecting against liability claims
“For coverage levels, I generally recommend carrying at least 100/300/100 coverage, which means $100,000 per person for bodily injury, $300,000 per accident for bodily injury, and $100,000 for property damage,” says Geoff Cudd, Consumer advocate and Owner of FindTheBestCarPrice.com. “However, if you have significant assets, you may want to opt for higher coverage levels to protect yourself against potential lawsuits.”
Full coverage with liability limits of 250/500/250
If you own an expensive home or have a high net worth, consider purchasing higher liability limits of 250/500/250, along with an umbrella policy.
Best for high-income earners or drivers with significant assets who:
- Prefer higher liability limits to avoid out-of-pocket exposure after severe accidents
- Have substantial savings, home equity, or investments to protect
- Drive new or luxury vehicles with high replacement costs
- Want the maximum financial protection available under standard auto insurance
- Frequently drive in high-traffic metro areas or states with higher lawsuit risk
“When it comes to coverage levels, one size does not fit all,” says Erin Kemp, consumer advocate for Bumper.com. “I believe a policy should be tailored for each individual, taking into account their personal assets, risk tolerance, and budget. A good rule of thumb, though, is to ensure your liability coverage at least equals the total of your assets. If you have significant assets to protect or a high-risk lifestyle, you should consider even higher coverage levels.”
Editor’s tipAs a dual-income household with a rental property in Nevada, Laura carries full coverage with limits of 250/500/250 on her two vehicles, as well as a $1 million umbrella policy. Umbrella policies and high liability limits are recommended for people with significant assets to protect.
When to add comprehensive and collision coverage
Collision and comprehensive coverage protect your vehicle, not just other drivers. While liability insurance pays for damage you cause to others, these optional coverages help you repair or replace your own car after certain events.
Collision coverage pays for damage to your vehicle if you collide with another car or object, regardless of who’s at fault. Comprehensive coverage pays for non-collision damage, such as theft, vandalism, fire, falling objects, hail, flooding or animal strikes.
“You may want higher limits of liability coverage and comprehensive and collision coverage if you have nicer or newer vehicles, significant assets to protect (such as a home, savings, own a business) or if you drive frequently in high-risk areas,” says Trent. “On the other hand, if your vehicle is older and less valuable, you might opt for lower or no comprehensive and collision coverage. While I wouldn’t suggest it, if you have limited assets, you could consider lower liability limits.”
These coverages are required if you finance or lease your car, since lenders want to protect their investment. They’re also smart to have if:
- Your car is worth more than $4,000-$5,000
- You can’t afford to replace your car out of pocket
- You live in an area prone to storms, theft or animal collisions
If your car is older and its value is close to your deductible amount, dropping these coverages could make sense. You can check your car’s actual cash value (ACV) using tools like Kelley Blue Book before deciding.
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How much uninsured and underinsured motorist coverage you need
Uninsured motorist (UM) and underinsured motorist (UIM) coverage protect you if another driver causes an accident but doesn’t have enough insurance — or any at all.
Even though most states require liability insurance, about 1 in 8 drivers on U.S. roads are uninsured. If you’re hit by one of them, you could be left paying for your medical bills and car repairs yourself unless you have UM or UIM coverage.
UM covers injuries (and sometimes property damage) caused by an uninsured driver. UIM covers your costs when the at-fault driver’s liability limits aren’t high enough to pay for all your damages.
Most insurance experts recommend choosing UM/UIM limits that match your liability coverage — for example, 100/300/100. This ensures you’re equally protected whether you cause an accident or someone else does.
You should strongly consider UM/UIM if you:
- Drive in a state with high uninsured driver rates (like Florida, Mississippi or New Mexico).
- Can’t afford unexpected medical or repair bills out of pocket.
- Want added protection for passengers and family members who ride in your car.
“It protects you if you’re in an accident with the one in seven drivers who don’t have insurance or don’t have enough insurance to cover your losses,” Trent says. “This coverage can be crucial, especially as we have seen an uptick in at-fault party limit issues, resulting in more uninsured and underinsured claims. In tough economic times, people look at all their expenses and try to cut out excess costs. Even though insurance shouldn’t be a place for cost-cutting measures, many people do and are unable to have their insurance fully pay for the damages they cause.”
Frequently Asked Questions: How much car insurance do I need?
What happens if I don’t have enough car insurance?
The financial consequences could be severe. If you’re in an accident that causes more damages and injuries than you have coverage for, you’ll be financially liable for the difference.
Can I change my coverage limits after purchasing a policy?
Once you purchase the auto insurance coverage that meets your needs, you can still change your mind and change your coverage limits. Contact your agent or your auto insurance company to discuss decreasing or increasing your limits.
Is state-minimum car insurance enough?
Usually not. State-minimum coverage often only covers a fraction of accident costs. For example, if you cause $75,000 in damages and your state only requires $25,000 in property coverage, you’ll owe the remaining $50,000 out of pocket.
How much liability insurance should I have?
Experts recommend at least 100/300/100 in liability limits. If you own a home or have significant assets, consider 250/500/100 or higher. Liability coverage protects your finances if you injure others or damage property in an accident.
Do I need collision and comprehensive coverage?
If you lease or finance your car, yes — lenders require both. Even if you own your car, these coverages are worth it if your vehicle is newer or worth more than a few thousand dollars.
How much uninsured/underinsured motorist coverage should I buy?
Match your uninsured/underinsured motorist (UM/UIM) coverage to your liability limits. This protects you if an at-fault driver doesn’t have enough insurance to pay for your medical bills or vehicle repairs.
How do I choose my deductible amount?
Pick a deductible that fits your budget — typically between $500 and $1,000. Higher deductibles lower your monthly premium but mean more out-of-pocket costs after a claim.
How much does full coverage car insurance cost in 2025?
In 2025, the national average cost for full coverage is $2,513 per year, or about $209 per month. Rates vary by state, vehicle and driving history.
What factors affect how much coverage I need?
- Your car’s value (newer cars need more coverage)
- Your finances and savings (higher net worth means you need higher liability limits)
- Your risk tolerance (lower deductibles = more peace of mind)
- Your location (urban areas or no-fault states may need more coverage)
Can I change my car insurance coverage anytime?
Yes. You can increase or reduce coverage at any time, though lenders may require specific limits. If your car is older or paid off, you can drop collision or comprehensive to save money — just make sure you can afford to replace your vehicle if needed.
How do I find the right balance between cost and coverage?
Compare quotes from multiple insurers using identical coverage levels. Start with the recommended limits, and adjust deductibles or add-ons like roadside assistance or gap insurance based on your budget.
Resources & Methodology
Sources
- Texas Insurance Information Portal. “About Auto Liability Insurance in Texas.” Accessed October 2025.
- Insurance Information Institute. “Facts + Statistics: Uninsured Motorists.” Accessed October 2025.
- Insurance Information Institute. “What is an umbrella liability policy?” Accessed October 2025.
Methodology
CarInsurance.com commissioned Quadrant Information Services to get car insurance rates. The rates are based on the sample profiles of 40-year-old male and female drivers carrying full coverage policies with limits of 100/300/100 and $500 collision and comprehensive deductibles. Read the detailed methodology for more information.
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