How much liability insurance do I really need?
Written by Marc Berry
Founder and Insurance Distribution Executive
Reviewed for accuracy by Cameron Berry
Licensed Property & Casualty Agent · NPN 20621185
Last reviewed
Sage isn't paid by anyone today. When that changes, this note and How we make money will say so. Sage doesn't sell policies.
Short answer: There's no single right number, but a common guideline is to carry enough liability coverage to protect your net worth — your savings, home equity, and future income — since that's what's exposed if you cause a serious accident.
State minimums are often far below the cost of a serious injury claim, and once your limits are exhausted, your personal assets can be on the hook for the rest. Many drivers carry 100/300/100 or higher, and some add an umbrella policy for liability beyond that. The right level depends on what you'd need to protect — exactly the kind of scenario Sage AI can walk through, and a licensed agent can confirm.
Reviewed for accuracy by Cameron Berry
Licensed Property & Casualty Agent · NPN 20621185
Last reviewed