How much car insurance do I need?

State minimum car insurance

You'll notice that state minimum liability limits include three numbers:

• The first number is the maximum your policy pays for bodily injury to one person (not yourself) in a single accident
• The second number is the most your policy pays for injuries you cause to other people (not yourself) in one accident when there is more than one person harmed in the accident
• The third number is the most it pays for damage to other people's property

Car insurance rules vary by state, so always check your local requirements. Here are the state minimum liability limits for ten U.S. states:

The 3 car insurance coverage tiers

1) State minimum coverage

This is the cheapest option and the lowest amount your state allows.

Best for:

• Drivers who need the lowest possible monthly payment
• Older cars with very low value
• Drivers who can afford to pay more out of pocket after a crash

Risk:

If you cause a serious crash, keep in mind that state minimum coverage may not be enough.

Liberty Mutual options within minimum tier:

You can build a basic auto policy with liability coverage. In many states, you can add personal injury protection and uninsured motorist coverage. If you want extra protection, you can add collision or comprehensive coverage.

2) Mid-level coverage

This is a more balanced car insurance choice because it gives you more protection without going all the way up to the highest limits.

Best for:

• Most drivers
• People who want better protection than the minimum
• Drivers with a car they rely on every day

Why it works:

It can help cover bigger accident costs and lower your chance of paying a large bill yourself.

Liberty Mutual options at the mid-level tier:

Liberty Mutual lets you choose higher liability limits, plus optional coverages like collision, comprehensive, rental car reimbursement, roadside assistance, and accident forgiveness where available.

3) Maximum protection coverage

This is the strongest protection. It typically means higher liability limits and more optional coverages.

Best for:

• Newer or more valuable cars
• Drivers with savings or assets to protect
• Families with teen drivers
• People who want less financial risk after an accident

Why it works:

If you cause a bad crash, higher limits can help protect your money, home, and future income.

Liberty Mutual options at the maximum protection coverage tier:

Maximum protection includes everything in the minimum and mid-level coverages, plus it offers higher liability limits and add-ons like collision, comprehensive, gap coverage, new car replacement, rental reimbursement, and roadside assistance, depending on the policy and state.

How much coverage do you really need?

Keep in mind: The more you have to lose, the more car insurance you should carry.

When you're deciding how much coverage, ask yourself:

• Do I have savings?
• Do I own a home?
• Do I have a teenager on my policy?
• Do I drive a newer car?
• Could I afford to replace my car out of pocket?

If you answered yes to any of these, the state minimum may not be enough coverage for you.

If your car is worth under $4,000, what coverage should you drop?

If your car is worth less than $4,000, you may want to think hard about whether collision and comprehensive are worth the cost. That said, If you still need your car to get to work or if you could not afford to replace it fast, you may want to keep more coverage.

Here's a simple rule of thumb:

• Keep liability coverage no matter what
• Consider dropping collision if your car is old and you could replace it yourself
• Consider dropping comprehensive if the car value is very low and the premium is high
• Keep uninsured motorist coverage

Quick decision guide

Choose state minimum if:

• You need the lowest cost
• Your car is very old
• You can handle some financial risk

Choose middle-level if:

• You want a safer balance of cost and protection
• You drive often
• You want to protect yourself from bigger bills

Choose maximum if:

• You have assets to protect
• Your car is newer or worth more
• You want the most peace of mind

Get started with Liberty Mutual

Choosing the right car insurance means finding the balance between cost and protection. Once you know which level of coverage makes sense for you, start your affordable car insurance quote with Liberty Mutual to customize your policy, or learn more about car insurance discounts that could help lower your premium.