Zaneta Wood, Ed.S. has over 15 years of experience in research and technical writing bringing a keen understanding of data analysis and information synthesis to reach a wide variety of audiences. She studied adult education and instructional technology at Appalachian State University as well as technical and professional communication at East Carolina University. Zaneta has prepared technical p...

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Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP®

UPDATED: Sep 15, 2020

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Here's what you need to know...

  • The first step is to find out your state’s requirements for auto insurance coverage
  • Increasing your liability insurance limit would give you more protection
  • Additional coverage is available for any possible scenario that you think might happen to you

How much personal auto insurance coverage is enough will vary depending on whether you are looking to just satisfy state requirements or want enough coverage to protect you financially.

Technically, fulfilling the mandated state coverage is enough to keep you driving legally and from losing your license. Mandated coverage is considered basic coverage, will cost you a lot less, but will leave you vulnerable.

Determining what coverage will take away some vulnerability and protect your assets is a bit more complicated, as each situation is going to be different.

There are a lot of factors and considerations when it comes to auto insurance. You want to get enough coverage to cover your needs without wasting money on coverage that is unnecessary.

Search for auto insurance coverage rates on this page by inserting your ZIP code into the FREE quote toolbox!

Table of Contents

State Requirements

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In order to have the very minimum in terms of personal auto insurance coverage, you will need to purchase the coverage that is outlined by your state insurance department.

In the bulk of states, liability coverage is the only type that you have to carry.

Liability coverage also includes liability for the other party’s damage of property and any bodily injuries sustained by the other driver or their passengers.

States will also lay out what liability limits are absolutely necessary for:

  • Individual bodily injury
  • Whole accident bodily injury
  • Property damage

If you only go with the stated requirements, you could be in financial trouble if you cause an accident and there is damage done to the other party.

Some states will require other coverage as well, such as medical insurance and/or uninsured motorist coverage.

These will help you be a little more protected, but it is worth looking into additional coverage in many instances.

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Liability Insurance Considerations

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