Auto Insurance Min vs Recommended
State minimums often $25K-$50K liability — inadequate for medical bills + lawsuit. Recommended 100/300/100 for moderate net worth.
| Net worth | — |
| State type | — |
| Current coverage | — |
| Coverage gap | — |
| Recommended coverage | — |
| Estimated cost increase | — |
State minimum auto insurance is often dangerously low — CA at 15/30/5, FL at 10/20/10 — meaningfully below what's needed to protect your net worth in a serious accident. Always carry liability AT LEAST equal to your net worth. Add umbrella for further protection.
Why Minimums Fail
CA: $15K bodily injury per person, $30K total, $5K property damage. One ICU visit can exceed $15K easily. Wrongful death suit can exceed $1M. Minimums leave you personally liable for the difference — they can take your savings, garnish wages, lien your home.
Recommended Coverage
Under $100K net worth: 50/100/50. $100-500K: 100/300/100 + $1M umbrella. $500K-$2M: 250/500/250 + $2M umbrella. $2M+: 500/1M/500 + $5M+ umbrella. Umbrella adds $1M coverage for $200-$400/year — cheapest insurance ever.
Cost vs Benefit Analysis
Going from 25/50 to 100/300: typically $100-200/year more. Adding $1M umbrella: $200-400/year. Total annual cost increase $300-600 for $1M+ of protection. Compare to the entire net worth being at risk. ROI: massive.
Last updated May 2026. Sources: NAIC Auto Insurance Guide.