How Much Car Insurance Do I Really Need?

One of the most common questions drivers ask is "How much car insurance do I actually need?" While state minimums provide a baseline, they're often not enough to fully protect you.

State Minimums: The Starting Point

Every state (except New Hampshire) requires some level of auto insurance. Common minimum requirements are expressed as three numbers, like 25/50/25:

Why Minimums Aren't Enough

Consider this scenario: You cause an accident that injures someone seriously. Medical bills reach $150,000. With only $25,000 in coverage, you're personally responsible for $125,000.

The Cost of Being Underinsured

Recommended Coverage Levels

For Most Drivers

For High Net Worth Individuals

Factors to Consider

When to Skip Certain Coverage

You might consider dropping collision/comprehensive if:

The Bottom Line

Don't let price alone drive your decision. Adequate coverage protects your financial future. The small additional cost of better coverage is worth the peace of mind.