Most experts, including CR and the Insurance Information Institute (III), recommend carrying liability coverage that offers:
• $100,000 worth of bodily injury liability coverage per person
• $300,000 worth of bodily injury liability coverage per crash
• $100,000 in property damage liability per crash
Insurance agents may call this “100/300/100” coverage, and it’s usually a good balance between coverage limits and premium costs. If you have significant financial assets, CR recommends taking out additional coverage, such as 250/500/250. This would prevent an insurance company from coming after your assets, including your savings, but it will cost you more in premiums.
Ultimately, the amount of additional coverage you carry depends on how much you have to lose and your tolerance for risk, Bell says. “Serious accidents can result in very expensive claims, but they are relatively rare,” he says. According to the III, the average bodily injury liability claim was $26,501 in 2022.
