Are state-minimum auto insurance limits enough?

Who may need this coverage

• Drivers carrying state-minimum liability today
• Households with savings, wages or equity to protect
• Families adding a teen or newly licensed driver
• Anyone who drives a newer or financed vehicle

Why it matters

Vehicle repair costs and medical bills have risen faster than statutory minimums. A single at-fault accident involving multiple vehicles or an injury can exceed a minimum limit quickly.

Situations in which it may be needed

• A multi-vehicle accident on a highway
• Injuries requiring emergency care or surgery
• Damage to a newer vehicle you do not own
• A collision with an uninsured driver

Risks of being uninsured or underinsured

• Personal responsibility for damages above your limits
• Legal action seeking payment from your assets
• No coverage to repair your own vehicle without collision
• Limited protection when the other driver is uninsured

What this coverage commonly helps protect

• Injuries and property damage you are liable for
• Your own vehicle with collision and comprehensive
• You and your passengers through uninsured motorist coverage
• Legal defense costs as described in the policy

What it may not cover

• Mechanical breakdown and routine maintenance
• Vehicles used for delivery or ride-share without an endorsement
• Personal property stolen from the car, in many cases
• Damage above the limits you selected

Questions to ask your agent

• What would it cost to raise my liability limits?
• What are my uninsured motorist limits?
• Does my deductible still make sense?
• Would an umbrella policy be a better value?

A practical checklist

• Find your current liability limits on the declarations page
• Compare those limits to your savings and home equity
• Ask for a quote at a higher limit before deciding
• Confirm every household driver is listed
• Review discounts for safe driving and good students

Related questions

• Are state-minimum auto insurance limits enough?
• When should I add a teen driver?

Keep reading

• Getting StartedWho needs umbrella insurance and what does it protect?
• Getting StartedHow to decide which types of insurance you actually need
• ClaimsWhat to do after an accident or property insurance loss