Auto Insurance Coverage Calculator
State minimum liability limits are the legal floor, not a recommendation. Sizing cover around the assets and income you are protecting shows how much more than the minimum you may actually need.
Recommended liability limit
$280,000.00
- State minimum
- $25,000.00
- Gap above the minimum
- $255,000.00
Values update as you type. This calculator covers the single scenario its formula assumes — see Common Mistakes for what it leaves out.
The formula this calculator uses
Recommended liability = assets + 3 x annual income + 25,000 per dependant
- assets
- Savings and property a claim could reach
- income
- Annual income exposed to future garnishment
- dependants
- People relying on your income
- minimum
- Your state's required liability limit
How to check the result by hand
- 1
Add up what a claim could reach
Total your liquid savings, investments and home equity. These are the assets a court judgment could attach, and they are what liability cover is there to protect.
- 2
Add several years of income
Future wages can be garnished, so multiply your annual income by three as a working allowance for what a claimant could pursue over time.
- 3
Allow for dependants
If others rely on your income, add a further allowance per dependant, because a hit to your earnings affects them as well.
- 4
Compare with your state minimum
Subtract the required minimum to see the gap. Most drivers find the recommendation is well above the legal floor.
- 5
Consider an umbrella for the top slice
If the recommended limit is higher than your insurer sells, a personal umbrella policy adds millions of cover across all your liabilities for a small premium.
For worked examples, common mistakes and the limits of this formula, read the full How To Calculate Auto Insurance Coverage page.