Start with What the Law Requires
Each state sets its own mandatory minimums for liability insurance. While it’s legal to drive with just that, it may not be enough to cover actual damages in a real accident. That’s why many drivers opt for coverage well above state limits.
Think About Your Vehicle’s Value
If you drive an older vehicle that’s paid off, liability coverage might be enough. But if your car is newer, leased, or financed, full coverage is often a smart move. That includes:
- Comprehensive coverage (for theft, fire, and more)
- Collision coverage (for damage in accidents)
Protect Yourself, Not Just Others
Most states don’t require protection for you. But you should still consider:
- Uninsured motorist protection – Roughly 1 in 8 drivers in the U.S. is uninsured.
- PIP or MedPay – Especially helpful if you don’t have strong health insurance.
How Much Is “Enough”?
Insurance experts often recommend these limits:
- Liability: At least $100,000 per person / $300,000 per accident
- Property damage: $100,000 These higher limits offer better protection and reduce your risk of paying out-of-pocket after a serious crash.
Conclusion
Many drivers assume they’re fully covered—until they file a claim and realize their policy falls short. In 2025, adequate car insurance coverage means thinking beyond the minimum. Consider your risk level, driving habits, and financial situation when choosing coverage. By investing a little more in the right protections now, you’ll gain peace of mind and stronger financial security if the unexpected happens.