How Much Auto Insurance Do I need?
Almost every U.S. state requires drivers to carry auto insurance coverage as a condition of maintaining a drivers license, however the required amount of coverage and the amount that you should carry are two entirely different things.
The amount of auto insurance that is "recommended" by insurance professionals depends on factors specific to your usage patterns, and the amount of assets you have to protect.
If you?re in an automobile accident, that?s your fault, and multiple passengers in your vehicle are injured? the medical bills, and subsequently damages, could add up very quickly. Most insurance professionals recommend anywhere from 100,000 to 300,000 in liability limits.
As mentioned above, the amount of auto insurance coverage that is right for you is a function of what assets you have to protect.
If you make $25,000 a year and do not own your home, $50,000/$100,000 should be plenty of coverage. However, if you make more than $100,000 a year, own your home worth $250,000 and own a substantial stock portfolio, $100,000/$300,000 of auto insurance coverage should be considered at a minimum.