Every state sets a floor for auto liability coverage, but those minimums were designed to get drivers legally on the road—not to protect your savings, home, or future income after a serious crash. If you cause an accident that injures someone or totals their vehicle, the gap between your liability limit and the actual damages can come out of your pocket. Choosing the right limits means thinking carefully about what you stand to lose.
Liability coverage pays for bodily injury and property damage you cause to others in an accident. It does not cover your own vehicle or your own medical bills—that is what collision and health coverage handle. Liability limits are typically written as three numbers, such as 100/300/100, meaning $100,000 per injured person, $300,000 per accident for bodily injury, and $100,000 for property damage. If damages exceed those limits, your personal assets are exposed to cover the difference.
A serious accident can generate costs that dwarf state minimums quickly. Emergency surgery, rehabilitation, and lost wages for an injured party can reach six figures before a lawsuit is even filed. A new vehicle can cost $50,000 or more to replace. Many states still set property damage minimums as low as $10,000—a figure that would not cover a moderately priced used car today. Drivers who carry only minimum limits are, in many cases, effectively uninsured against any meaningful claim.
The right starting point is your net worth. A judgment against you can attach to savings accounts, investment accounts, and in some states, equity in a second property. If your assets exceed your liability limits, you have a coverage gap. Consider the following when setting your limits:
For drivers with meaningful assets, raising auto liability limits to 250/500/100 and adding a personal umbrella policy is often the most cost-effective path to real protection. Umbrella policies typically provide $1 million or more in additional liability coverage for a few hundred dollars a year. The combination gives you a broad buffer against the kinds of multi-vehicle or serious injury accidents that produce the largest claims.
Choosing liability limits without knowing your full financial picture is guesswork—and the consequences of guessing wrong can follow you for years. A Truscott coverage review examines your assets, income, and current auto policy to identify whether your limits genuinely protect your position or just satisfy a state requirement. Reach out and we will help you find the right number before you need it.
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