Basic Liability Requirements
Every driver must carry at least the state‑mandated minimum liability coverage, which typically includes a split limit such as 25/50/25 (bodily injury per person / bodily injury per accident / property damage).
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How to Pick Adequate Limits
Consider your net worth, assets, and driving habits when selecting limits higher than the minimum; higher limits protect you from lawsuits and out‑of‑pocket expenses if you cause a serious accident.
Key Types of Liability Coverage
Bodily Injury Liability (BI) pays for medical bills, lost wages, and legal fees for the other party's injuries. Property Damage Liability (PD) covers repair or replacement of the other driver's vehicle and other property.
When Additional Coverage May Be Needed
If you own high‑value assets, rent or own a home, or have significant savings, opting for 100/300/100 or higher limits reduces the risk of personal asset seizure after a claim.
State Variations and Minimums
Some states, like California and New York, require higher minimums (e.g., 15/30/5), while others allow very low limits. Always verify your state's legal requirement before setting your policy.
Quick Comparison Table
| Coverage | Typical Minimum | Recommended Minimum for Protection |
|---|---|---|
| Bodily Injury per Person | $25,000 | $100,000 |
| Bodily Injury per Accident | $50,000 | $300,000 |
| Property Damage | $25,000 | $100,000 |