State minimum auto insurance is the lowest amount of liability coverage your state legally requires you to carry. In most states, that minimum falls between $25,000 and $50,000 for bodily injury per person. These amounts were set years ago and have not kept pace with the cost of medical care, vehicle repairs, or legal settlements. If you cause an accident that exceeds your policy limits, you are personally responsible for the difference.
This article shows the actual dollar math behind why minimum coverage falls short and what limits financial advisors and insurance professionals most commonly recommend instead.
What state minimums actually look like
Liability limits on your declarations page are typically shown as three numbers separated by slashes. For example, 25/50/25 means:
- $25,000 per person for bodily injury
- $50,000 per accident for bodily injury (total across all injured people)
- $25,000 for property damage
Here are the minimum liability requirements for ten of the most populated states:
| State | Bodily Injury (per person/per accident) | Property Damage |
|---|---|---|
| California | $30,000 / $60,000 | $15,000 |
| Texas | $30,000 / $60,000 | $25,000 |
| Florida | Not required (PIP only) | $10,000 |
| New York | $25,000 / $50,000 | $10,000 |
| North Carolina | $50,000 / $100,000 | $50,000 |
| Pennsylvania | $15,000 / $30,000 | $5,000 |
| Illinois | $25,000 / $50,000 | $20,000 |
| Ohio | $25,000 / $50,000 | $25,000 |
| Georgia | $25,000 / $50,000 | $25,000 |
| Michigan | $50,000 / $100,000 | $10,000 |
Michigan requires PIP coverage with minimums starting at $250,000, which is why its overall insurance costs are among the highest. Pennsylvania sits at the bottom with $15,000 per person for bodily injury. Florida is unique in not requiring bodily injury liability at all (only PIP and property damage). Most states cluster around $25,000 to $30,000 per person.
For an always-current version covering all 50 states, see our 2026 State-by-State Minimums chart or the interactive State Minimum Coverage page.
The math that shows why minimums fail
The problem with minimum coverage is simple arithmetic. The costs that liability insurance is supposed to cover have grown far beyond what those minimums were designed to handle.
Scenario 1: You rear-end a new car
You're distracted for two seconds, you rear-end the car ahead of you, and their bumper, tailgate, and rear quarter panel need replacement. Parts, labor, and a rental car for the other driver while their car is in the shop.
Typical cost: $12,000 to $22,000.
If you live in a state with a $5,000 property damage minimum (Pennsylvania), your insurance pays $5,000 and you owe the rest out of pocket. Even a fender bender can leave you $7,000 to $17,000 short. States like Florida ($10,000 PD) and New York ($10,000 PD) aren't much better.
Scenario 2: You cause a two-car accident with injuries
You run a red light and hit another car. The other driver goes to the ER with a broken collarbone. Their passenger has soft tissue injuries that require physical therapy for several months. The other car is totaled.
Typical costs:
- ER visit and broken collarbone treatment: $15,000 to $35,000
- Passenger's physical therapy: $5,000 to $12,000
- Totaled vehicle replacement: $35,000
- Pain and suffering claims: $20,000 to $50,000
Total exposure: $75,000 to $132,000.
With 25/50/25 limits, your insurance pays a maximum of $25,000 per injured person, $50,000 total for injuries, and $25,000 for the vehicle. That's $75,000 in total available coverage. In the higher-cost version of this scenario, you're personally on the hook for up to $57,000.
Scenario 3: A serious multi-vehicle accident
You cause a chain-reaction accident on a highway. Three vehicles are damaged. Two people require surgery. One person misses six months of work.
Total claims could easily reach $250,000 to $500,000 or more.
With state minimum coverage, your policy pays out its limit (often $50,000 to $60,000 for the whole accident), and the remaining $200,000 to $440,000 is your personal responsibility. At that point, the injured parties can sue you for the balance. Your wages can be garnished. Your savings can be seized. In some states, your home could be at risk.
The cost difference is smaller than you think
Here's what surprises most people: the premium difference between minimum coverage and solid coverage is not dramatic.
The exact numbers depend on your state, your driving record, and your carrier. But as a general rule, moving from 25/50/25 to 100/300/100 typically adds somewhere between $150 and $400 per year to your premium, depending on your risk profile. That's roughly $12 to $33 per month.
For that increase, you're getting four times the per-person bodily injury coverage, six times the per-accident bodily injury coverage, and four times the property damage coverage. The reason the cost increase is relatively modest is that most accidents don't hit your policy limits. You're paying extra for protection against the expensive scenarios, and those scenarios are statistically uncommon. But when they happen, they can be financially devastating.
What limits should you actually carry?
PolicyLector doesn't make specific coverage recommendations because your situation, state, and finances are unique. But here's what financial professionals and insurance experts most commonly suggest as a starting point for drivers who want solid protection:
100/300/100 is the limit combination that appears most frequently in professional recommendations for middle-income households. It means $100,000 per person for bodily injury, $300,000 per accident, and $100,000 for property damage.
This covers the vast majority of accident scenarios. It's not bulletproof (a catastrophic accident with severe injuries can exceed even these limits), but it puts meaningful distance between you and personal financial exposure.
If you have significant assets to protect (a home with equity, retirement savings, investments), many advisors suggest going higher or adding an umbrella policy. An umbrella policy adds an extra $1 million or more in liability protection on top of your auto and homeowners limits. It typically costs between $150 and $300 per year for the first $1 million, making it one of the most cost-effective insurance purchases available.
How to check your current limits
Pull up your declarations page. Your liability limits are listed in the coverages section, either as split limits (like 100/300/100) or as a combined single limit (like $300,000 CSL).
If you see numbers like 25/50/25, 30/60/25, or anything with a per-person bodily injury limit under $50,000, it's worth calling your agent and asking what it would cost to increase to 100/300/100. The quote is free, and the answer might surprise you.
If you're not sure how to read your Dec page, you can upload it to the free PolicyLector analyzer for a plain English breakdown of every coverage and limit on your policy.
Frequently asked questions
If I carry state minimums and cause an accident that exceeds my limits, what happens?
Your insurance company pays up to your policy limit and then stops. The injured party can sue you for the remainder. If they win a judgment, your wages, bank accounts, and in some states, your home could be at risk. This is called being "personally liable for the excess."
Do most drivers carry state minimums?
It varies by state and by demographic, but a significant percentage of drivers carry minimum or near-minimum limits, particularly younger drivers and drivers who bought the cheapest policy available online without reviewing the coverage details. The Insurance Research Council has noted that underinsured claims have been rising in recent years.
Is 50/100/50 enough?
It's better than state minimums, but it still exposes you in any accident involving serious injuries or a newer vehicle. A single broken bone with surgery can produce a claim above $50,000. For the relatively small premium difference, 100/300/100 provides substantially more protection.
Does my state minimum cover me if I drive in another state?
Your policy will generally meet the minimum requirements of whatever state you're driving in, even if that state's minimums are higher than your home state's. But meeting another state's minimum doesn't mean you have adequate coverage. It means you have the legal minimum to drive there.
Check your limits today
Log into your carrier's app or website, open your declarations page, and look at the first three numbers in your liability coverage section. If they're at or near your state's minimum, get a quote for 100/300/100. The cost difference for significantly better protection is often less than a streaming subscription.
Or upload your Dec page to the free PolicyLector Dec Page Analyzer and we'll flag whether your liability limits are out of step with what most experts recommend.
For a full walkthrough of every coverage type on your auto policy, including when to increase limits, when to add coverages, and when you might be overpaying, see Auto Insurance Decoded.
Sources referenced in this article:
- National Association of Insurance Commissioners (NAIC): State minimum coverage requirements (naic.org)
- Insurance Research Council (IRC): Uninsured and underinsured motorist trends
- Bureau of Labor Statistics: Consumer Price Index, medical care component
- PolicyLector.com/state-minimums: Complete state-by-state minimum coverage chart