How much car insurance do I need?
State minimums are too low for most drivers. This calculator recommends coverage levels based on your net worth, vehicle value, and home state's no-fault rules.
Why state minimums aren't enough
State minimum coverage exists to satisfy the legal requirement to drive — not to protect you financially. A typical state minimum (25/50/25, i.e., $25,000 per person bodily injury / $50,000 per accident / $25,000 property damage) leaves you personally liable for any damages above those limits. Modern car prices, medical costs, and lawsuit awards routinely exceed minimums by 5-20x.
Three rules:
- Bodily injury and property damage liability should match your net worth. If you have $250,000 in assets between savings and home equity, you need at least 250/500/100 liability — otherwise a single at-fault accident can wipe you out.
- Add comprehensive + collision if your vehicle is worth more than $5,000-$10,000. Below that threshold, the annual premium starts to exceed the vehicle's value and self-insurance makes sense. Above it, paying off your car's depreciation cost in premiums beats writing a $25,000 check after a totaled vehicle.
- Lenders and lessors require comp + collision. If your vehicle is financed or leased, you have no choice — the loan agreement mandates physical damage coverage. Leases additionally require gap coverage (most leases include it; check yours).
State no-fault rules add a layer
Twelve states require Personal Injury Protection (PIP): FL, HI, KS, KY, MA, MI, MN, NJ, NY, ND, PA, UT. PIP covers medical expenses regardless of fault, and minimums vary from $3,000 (NY) to $50,000+ (NJ optional). The calculator above adjusts for these where they apply.
Uninsured/underinsured motorist (UM/UIM) coverage is mandatory in 22 states and recommended everywhere else. It protects you when the at-fault driver has no insurance or insufficient limits — common in states with low minimums or high uninsured rates (FL, MS, MI, TN). Carry UM/UIM at the same limits as your liability.
For state-specific minimums, see car insurance minimums by state. For shopping price after you know what coverage to buy, see cheapest car insurance by state. For special situations: SR-22 after a DUI or major violation, non-owner policy, teen drivers, and GAP insurance for leased/financed vehicles.