Insurance
Coverage gap
How much more liability cover than the legal floor you should consider.
The Formula
Gap = recommended - state minimum
How much more liability cover than the legal floor you should consider.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| M | State minimum | currency | The required liability limit. |
What Each Symbol Means
Mcurrency
State minimum
The required liability limit.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate auto insurance coverage page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate Auto Insurance Coverage, filed under Finance. Every number the guide produces comes from substituting into this one line.