Policy Compass

Liability Coverage Calculator: How Much Car Insurance Liability Do I Need?

Liability coverage pays for injuries and damage you cause to others. If a claim is bigger than your limits, you can be personally responsible for the rest. This calculator compares what you have to protect with three common levels of coverage.

General education, not personal advice. Rules vary by state and insurer. Use the results to ask your agent better questions, not as a recommendation for your situation.

State minimums change, so check yours with your state insurance department or on your policy's declarations page.

Home equity is your home's value minus what you still owe. Retirement accounts are often protected from lawsuits, so you can leave them out if you aren't sure.

How the suggestions work

  • State minimum: the legal floor in your state. Every state sets its own, and many are low next to what a serious injury crash can cost.
  • 100/300/100: $100,000 of bodily injury per person, $300,000 per accident and $100,000 of property damage. Consumer Reports says most experts, including CR and the Insurance Information Institute, recommend about this level. The calculator suggests it when your savings and home equity total $100,000 or less and your assets plus a year of income total $300,000 or less.
  • Higher limits or an umbrella: above those amounts, the calculator suggests pricing higher limits, such as 250/500/250. Once your assets plus a year of income go past $500,000, it also suggests asking about an umbrella policy, which adds liability coverage on top of your auto and home policies.

These cutoffs are a simple rule of thumb, not an insurer's formula. The idea behind them comes from our guide: your limits should be at least as large as what you could lose in a lawsuit, including savings, home equity and future income. See How Much Car Insurance Do I Need? for the full explanation.

Frequently asked questions

What does 100/300/100 mean?

It's $100,000 of bodily injury coverage per person, $300,000 of bodily injury coverage per accident and $100,000 of property damage coverage per accident.

Is the state minimum enough?

It keeps you legal, but it may not cover a serious crash. If damages go over your limits, you can be sued for the difference.

How much more do higher limits cost?

It depends on your insurer and state. Raising liability limits often costs less than people expect, so ask for prices at 100/300/100 and 250/500/250 side by side.

Do I need an umbrella policy?

Many people with significant assets consider one. Umbrella policies usually require certain minimum limits on your auto and home policies, so ask your insurer what it requires.

Is my information saved?

No. Everything runs in your browser. Nothing you enter is stored or sent anywhere.

Sources

  1. How Much Car Insurance Do You Need?, Consumer Reports
  2. State insurance departments, National Association of Insurance Commissioners
  3. Nine ways to lower your auto insurance costs, Insurance Information Institute

This calculator is for general education only, not personal financial, legal or insurance advice. It doesn't quote prices or recommend specific insurers.

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