Question 1

How much auto liability insurance do I need?

Accepted Answer

For most US households, $300,000/$300,000 in bodily injury liability is the right answer. High-asset households need more — PolicyChat's methodology is to carry at least 1.5–2× your annual income or asset value (whichever is higher) in liability coverage, plus an umbrella policy above that. Carrying only state minimum liability leaves your personal assets exposed if you're sued.

Question 2

What is the difference between 100/300 and 300/300 auto liability?

Accepted Answer

100/300 means $100,000 per person and $300,000 per accident in bodily injury coverage. 300/300 means $300,000 per person and $300,000 per accident. For a serious injury claim — a TBI, spinal injury, or long-term disability — a $100,000-per-person limit is frequently exhausted. The upgrade to 300/300 typically adds $8–18/mo.

Question 3

Should I add an umbrella policy on top of my auto liability?

Accepted Answer

Yes, for most households with meaningful assets. An umbrella policy provides $1M+ in additional liability coverage above your auto and home limits for $150–300/yr. Umbrella requires you to first carry 250/500/100 underlying auto liability — check your current policy limits before purchasing.

Question 4

What does 250/500/100 auto liability mean?

Accepted Answer

250/500/100 means $250,000 per person / $500,000 per accident in bodily injury, and $100,000 in property damage. This is the standard minimum required by most umbrella insurance carriers for the underlying auto policy to attach. It's also a sensible liability floor for households with any material assets.

Auto Liability Limits — How Much Do You Actually Need (2026)

Auto Liability Limits — How Much Do You Actually Need (2026)

PolicyChat Verdict

Why this recommendation

Methodology

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