Auto Insurance Coverage Needs Calculator
Calculate the auto-insurance liability limits and add-on coverages you actually need. State minimums (often 25/50/25) are dangerously low — a serious accident easily exceeds $300K in damages. Coverage targets adjust to your net worth, household-driver risk, and umbrella-policy bridge requirements.
Why State Minimums Are Inadequate
Most states require only 25/50/25 (= $25K bodily injury per person / $50K per accident / $25K property damage). A single ER visit averages $3,500; a fractured leg surgery $30K-$50K; a severe injury requiring hospitalization $100K-$500K. Hitting a Tesla Model S costs $80K in property damage alone. State minimums get you arrested-free for driving but leave your personal assets exposed. Lawsuit risk is real.
Coverage Tiers by Net Worth
Under $100K net worth: 100/300/100 minimum. $100K-$500K: 250/500/100. $500K-$1M: 500/500/100 or 250/500/250 + $1M umbrella. $1M-$5M: 500/500/100 + $1-3M umbrella. $5M+: 500/500/100 + $5M+ umbrella with primary auto/home policies at insurer's preferred 'umbrella underlying' levels. Carriers typically require 250/500 underlying for umbrella issuance.
UM/UIM — Uninsured/Underinsured Motorist
Roughly 12.6% of US drivers carry no insurance (Insurance Research Council 2024); another 15% carry only state minimums. If you're hit by them, your own UM/UIM coverage pays your medical/lost-wages — but only up to your UM/UIM limit. Match UM/UIM limits to liability limits (e.g. 250/500/100 liability → 250/500 UM/UIM). UM/UIM is one of the most under-purchased coverages, despite being cheap. Critical in low-coverage states (FL, CA, NM, TN, KY all >18% uninsured).
Add-On Coverages Worth Buying
(1) Medical Payments / PIP: $5K-$10K. Pays your medical bills regardless of fault. Cheap. (2) Comprehensive + Collision: required for car loans, optional once paid off; consider dropping when vehicle value < 10× annual premium. (3) Rental Reimbursement: $30-$50/day for 30 days. (4) Roadside assistance: cheaper than AAA. (5) Original Equipment Manufacturer (OEM) endorsement: ensures repair shop uses OEM parts not aftermarket. (6) New-car replacement: replaces totaled new car with same model. (7) Gap insurance: required if loan balance > car value.
Auto Insurance Coverage Needs Calculator — How NAIC State Reports Set the Realistic Floor
State-mandated minimums are a legal floor, not a financial-protection floor. Per the NAIC Center for Insurance Policy and Research auto insurance topic, the national average bodily injury claim has risen above $24,000 and property-damage claims average $5,800 (NAIC 2024 closed-claim data) — meaning the popular 25/50/25 state minimum will exhaust on a single moderate accident. Use this calculator with two passes: first at your state's legal minimum (to see how exposed you are), then at the 100/300/100 baseline most underwriters consider "adequate". The premium difference is typically $15-$40/month — a fraction of what one uncovered $150,000 medical-bill lawsuit would cost. If your net worth crosses $250,000, also price a $1M personal-umbrella policy ($150-$300/year typical); without one, an at-fault accident judgment can reach your home equity and retirement accounts in many states.
Sources: NAIC Center for Insurance Policy & Research, Insurance Information Institute (III). Last updated: 2026-06-14.