Auto Coverage Needs Calculator

Frequently Asked Questions

What auto liability limits should I carry?

State minimums (often 25/50/25) are dangerously low. Industry standard recommendation is 100/300/100 ($100K per person bodily injury / $300K per accident / $100K property damage). Drivers with assets over $500K should also add umbrella coverage.

Do I need collision and comprehensive coverage?

A common rule: drop collision/comprehensive when annual premium exceeds 10% of the car's value. For a 12-year-old car worth $3,000, paying $400+/year for collision rarely makes financial sense. New and financed vehicles always need full coverage.

What is uninsured/underinsured motorist coverage?

It pays YOUR damages when an at-fault driver has no or insufficient insurance. The Insurance Research Council estimates 14% of U.S. drivers (1 in 7) are uninsured. Match your UM/UIM limits to your bodily injury liability limits.

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This calculator provides estimates based on general assumptions. Actual insurance costs and coverage vary by insurer, location, and individual risk factors. Not a quote or binding offer. Contact insurance providers directly for accurate quotes and coverage options.

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How This Calculator Works

State minimum auto limits protect the state, not you. This tool sizes coverage to your exposure. It sets comprehensive and collision to roughly 80% of your vehicle's value (with a $10,000 floor), then sizes liability to what you actually have at risk: it estimates your net worth as five years of income plus outstanding debt, and recommends liability at 1.5× that figure. Uninsured/underinsured motorist coverage is matched to your liability limit, and medical payments default to $5,000 unless you specify more.

Why Liability Is the Number That Matters

Collision pays to fix your car - capped at the car's value. Liability pays for the catastrophe you cause: the multi-car pileup, the permanently injured pedestrian, the lawsuit that targets your home and future wages. A serious injury claim routinely exceeds $100,000–$300,000, and a state minimum of $25,000 leaves the rest coming from your assets. Liability is cheap relative to the protection it buys - doubling it often costs only 10–20% more premium.

Reading Those Coverage Numbers

100/300/100 means $100k per person injured, $300k per accident, $100k property damage. For most households with assets, this is a sensible floor.

Uninsured/underinsured motorist is the coverage people skip and regret - roughly 1 in 7 U.S. drivers is uninsured, and it pays when the at-fault driver can't.

An umbrella policy sits above auto liability, adding $1M+ for ~$150–$300/year - the highest leverage dollars in personal insurance.

Match UM/UIM to your liability limit - otherwise you're better protected against suing yourself than against being hit by a broke driver.

When to Drop Collision & Comprehensive

These cover only your own car, so their value falls with the car's. The classic test: if annual collision + comprehensive premium plus deductible exceeds roughly 10% of the car's actual cash value, you're paying a lot to insure a little. On a $3,000 beater with a $1,000 deductible and $400/year premium, the most you'd ever recover is $2,000 - often not worth it. Keep these on financed or leased vehicles (the lender requires it) and on cars you couldn't afford to replace out of pocket.

Common Coverage Mistakes

Buying state minimums to save $20/month while exposing a $400,000 net worth.

Carrying high liability but rejecting UM/UIM - a logical contradiction.

Keeping full coverage on a paid-off 12-year-old car worth less than the annual premium.

Setting a $250 deductible when an $1,000 one would cut premium enough to self-insure small dings.

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