Every figure in this article is traced to the primary sources listed under Sources.

Most drivers should carry at least 100/300/100 in liability coverage: $100,000 per person, $300,000 per accident, and $100,000 for property damage. State minimums are often much lower. The right limit depends on what you own, what you earn, and what you could lose in an at-fault accident.

Key Takeaway: Liability coverage pays for injuries and property damage you cause to others. It does not repair your own car. According to Consumer Reports and the Insurance Information Institute, 100/300/100 is a sensible baseline for drivers with assets to protect. State minimums vary widely: California requires 30/60/15 as of 2026, Texas requires 30/60/25, New Jersey raised its minimum to 35/70/25 on January 1, 2026, and Hawaii raised its minimum to 40/80/20 on the same date. Florida does not require most drivers to carry bodily injury liability coverage, though drivers with DUI convictions and commercial vehicles must carry it. A serious at-fault accident can expose your savings, home, and future income if your limit is too low. Raising your limits is often cheaper than drivers expect, and a personal umbrella policy can add extra protection.

Key Findings

  • Recommended baseline 100/300/100: $100,000 per person, $300,000 per accident, $100,000 property damage.
  • State minimums are lower California 30/60/15, Texas 30/60/25, NJ 35/70/25 (Jan 1, 2026), Hawaii 40/80/20 (Jan 1, 2026), Florida no bodily injury requirement for most drivers.
  • What it protects Liability covers injuries and property damage you cause to others — not your own car or injuries.

How Much Liability Car Insurance Do You Need?

Most drivers should carry at least $100,000 in bodily injury liability per person and $300,000 per accident, plus $100,000 in property damage liability — the combination known as 100/300/100. Consumer Reports and the Insurance Information Institute recommend that baseline for drivers with assets to protect. State legal minimums are almost always lower, and that gap is where financial risk lives.

$100,000per injured person (bodily injury)
$300,000per accident (all injuries)
$100,000property damage per accident

Liability limits are written as three numbers separated by slashes. In a 25/50/10 policy, the first number is the maximum your insurer will pay for bodily injury to one person ($25,000). The second is the maximum for all bodily injuries in one accident ($50,000). The third is the maximum for property damage ($10,000). A 100/300/100 policy raises those limits to $100,000 per person, $300,000 per accident, and $100,000 for property damage.

Liability car insurance pays for injuries and property damage you cause to other people in an at-fault accident. It does not pay to repair your own car or to treat your own injuries — those costs require separate coverages such as collision, comprehensive, and medical payments. If you cause a serious accident and the other driver’s medical bills or repair costs exceed your limit, you can be held personally liable for the difference. A court judgment could potentially lead to wage garnishment or a lien on your property, depending on the state. An at-fault accident can also affect your own future rates, as described in our guide on how not-at-fault accidents affect car insurance rates.

Practical note: Consider a hypothetical accident in which you are at fault and three people in the other car are injured. If their medical bills total $150,000, a 25/50/10 policy would pay at most $50,000 for those injuries, leaving $100,000 that could be pursued against you personally. With a 100/300/100 policy, the same accident would be fully covered, up to the policy limits.

What Changes by State or Policy?

State minimum requirements vary widely. California requires 30/60/15 as of 2026, Texas requires 30/60/25, and several states raised their minimums at the start of 2026. Florida does not require most drivers to carry bodily injury liability coverage, relying instead on personal injury protection and property damage liability. Some insurers also offer a combined single limit (CSL) instead of split limits — a CSL policy provides one total dollar amount for all liability claims from a single accident.

Lower state minimums
California 30/60/15, Texas 30/60/25, Florida no bodily injury requirement for most drivers
Below the 100/300/100 benchmark across every category.
Drivers in these states can legally carry limits far below what a serious accident typically costs. The legal minimum does not cap your personal exposure.
Higher state minimums (effective January 1, 2026)
New Jersey 35/70/25, Hawaii 40/80/20
Improved, but still below the 100/300/100 benchmark.
New Jersey and Hawaii raised their statutory minimums at the start of 2026. Drivers who renew in 2026 are subject to the new minimums, but buying above the legal floor remains optional.

Regardless of your state’s minimum, you can always buy higher limits. Drivers with significant assets may also consider a personal umbrella policy, which adds liability coverage above the auto policy limits.

Compare liability limits side by side

See how 100/300/100 versus your current limits changes the cost before your next renewal.

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What Drivers Should Do Now

Start by finding out what your state requires, then compare that floor to your own financial exposure. These steps apply to any driver in any state.

Check your state’s minimum
Establishes the legal floor, not the financial target.
Open your state insurance department’s website and confirm the current liability minimums. California, Texas, New Jersey, Hawaii, and Florida all publish their requirements directly.
Add up your net worth
Your net worth is the amount you could lose in a lawsuit.
Include home equity, savings, investments, and any future earnings that could be garnished. If your liability limits sit below your net worth, you are absorbing the gap yourself.
Compare your limits to 100/300/100
A benchmark, not a ceiling.
Ask your insurer for a quote at 100/300/100 and at one tier higher. Our guide on how to lower your auto insurance premium covers the discount levers that apply without cutting coverage.
Consider a personal umbrella policy
Adds liability protection above the auto policy.
If your assets exceed your auto liability limits, a personal umbrella policy typically costs less per dollar of coverage than raising the auto limits alone. Ask your insurer how the two pair together.
Review at every renewal
Your financial picture changes; your limits should keep pace.
Recheck limits after a home purchase, a raise, or a new teen driver on the policy. Each of these changes your at-fault exposure and the size of the policy you actually need.

Frequently Asked Questions About Liability Car Insurance

How much liability insurance should I carry?

Most drivers should carry at least 100/300/100, meaning $100,000 per person and $300,000 per accident for bodily injury, plus $100,000 for property damage. State minimums are often much lower, but minimum limits can leave you personally responsible for damages above your coverage.

What does 100/300/100 mean in car insurance?

The three numbers describe split liability limits. The first is the maximum your insurer pays per injured person ($100,000). The second is the maximum for all injuries in one accident ($300,000). The third is the maximum for property damage ($100,000). Together they set the ceiling for what your policy will pay if you cause an accident.

The Bottom Line

State minimum liability coverage is the legal floor, not a financial safety net. For most drivers with assets to protect, 100/300/100 is a more realistic starting point. Raising your liability limits is often one of the least expensive ways to add meaningful financial protection to your auto policy.

Drivers with higher net worth or a teen on the policy should look at limits well above 100/300/100, and consider a personal umbrella policy on top. This article is general information, not legal or financial advice, and not a personal quote.

How We Verified This

We reviewed the liability coverage explanation published by GEICO, the 100/300/100 recommendation reported by Consumer Reports and the Insurance Information Institute, and state minimum requirement pages from the California Department of Insurance, the Texas Department of Insurance, the New Jersey Department of Banking and Insurance, the Hawaii Insurance Division, and the Florida Department of Financial Services. We checked 2026 minimum limit changes reported for California, Texas, New Jersey, and Hawaii. We could not independently open the Insurance Information Institute’s page in this review, so the III recommendation is attributed through Consumer Reports. This article does not cover every state’s rules or individual policy terms; drivers should confirm current requirements with their state insurance department. Reviewed against the cited sources and approved by the editor before publication.

Disclaimer: This article is for informational purposes only and is not professional insurance, legal or financial advice. Rates, rules and deadlines vary by insurer, state and driver, and can change. Confirm details with a licensed agent, your insurer or your state department of insurance before making a coverage decision.

Sources

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