How much car insurance do I need?
By Colson · Updated June 13, 2026
At minimum you need your state's required liability coverage, but most drivers should carry more — often 100/300/100 liability plus collision and comprehensive if the car is financed or worth keeping. The right amount protects your assets, not just your car.
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State-minimum coverage is liability only — it pays for the other party's injuries and property damage when you're at fault, up to low state limits. It does nothing for your own car or injuries, and the limits are often too low to cover a serious crash, leaving your savings exposed.
How much liability coverage should you carry?
A common recommendation is 100/300/100 — $100k bodily injury per person, $300k per accident, $100k property damage — or enough to cover your net worth. If a crash causes injuries beyond your limits, you're personally on the hook for the rest, so don't under-insure liability to save a little.
Do you need collision and comprehensive?
Collision (crash damage to your car) and comprehensive (theft, weather, animals) are usually required while you finance or lease, and worth keeping on any car you couldn't easily replace. On an old, low-value car you might drop them and self-insure. Consider gap insurance if you owe more than the car is worth.
Frequently asked questions
Is state-minimum car insurance enough?
Usually no. Minimum liability limits are often too low to cover a serious accident, and minimum coverage excludes damage to your own car. Most drivers should carry higher liability limits plus collision and comprehensive.
What does 100/300/100 mean?
It's $100,000 bodily-injury coverage per person, $300,000 per accident, and $100,000 for property damage — a widely recommended liability level that better protects your assets than state minimums.
When can I drop full coverage?
Once your car is paid off and worth little enough that collision/comprehensive premiums approach the potential payout, dropping them and self-insuring can make sense. Until then, keep full coverage.
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