Auto Liability Coverage Limits Calculator
Determine the right liability limits to protect your assets. Enter your net worth and annual income to get a personalized recommendation.
How Coverage Limits Are Determined
Your liability coverage should be high enough to protect everything you own. A lawsuit after a serious accident can target your savings, home equity, and future income. The general rule:
- Under $100,000 exposure → 50/100/50 limits (minimum viable protection)
- $100,000–$300,000 exposure → 100/300/100 limits (standard recommendation)
- Over $300,000 exposure → 250/500/250 limits or add an umbrella policy
Limits are expressed as Bodily Injury per person / Bodily Injury per accident / Property Damage in thousands of dollars.
Frequently Asked Questions
What do liability limits like 100/300/100 mean?
These numbers represent: $100,000 per injured person, $300,000 total per accident for bodily injury, and $100,000 for property damage. If you injure two people in an accident, each can receive up to $100,000 but the total can't exceed $300,000.
Why should my limits reflect my net worth?
If you're sued after an accident, plaintiffs' attorneys look for assets to recover damages above your policy limits. A judgment can garnish wages, seize bank accounts, and place liens on your home. Your coverage should shield your entire financial picture.
Is state minimum liability enough?
Almost never. State minimums (often 25/50/25 or lower) are dangerously low. A single serious injury easily exceeds $100,000 in medical bills. If your policy limit is exhausted, you pay the rest personally.
Should I add an umbrella policy?
If your net worth exceeds $300,000, an umbrella policy ($1M–$5M) typically costs only $150–$300/year and provides crucial extra protection above your auto and home liability limits.
How does income factor into coverage needs?
Courts can award damages based on future earning potential. If you earn $80,000/year, a judgment could claim 5+ years of wages ($400,000+). Your liability coverage should at minimum cover 5× your annual income.
Disclaimer: Results are estimates only. Coverage needs vary by state and individual circumstances. Consult a licensed insurance professional for actual recommendations.