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Top 5 Home Insurance Myths
Most homeowners do not learn what their policy actually covers until they file a claim. By then it is too late. After...
AUTO INSURANCE
How Much Car Insurance Do I Need?
State minimums are set for affordability, not for what a serious accident actually costs. Here is what the three numbers on your policy mean, what most experts recommend instead, and when to go higher.
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- How Much Insurance Do I Need
- How Much Car Insurance
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Quick Answer: Most experts recommend 100/300/100: $100,000 bodily injury per person, $300,000 per accident and $100,000 property damage. Consumer Reports and the Insurance Information Institute cite this as a reasonable balance of protection and premium. If you own a home or have meaningful savings, 250/500/250 plus an umbrella policy is the common next step. State minimums, such as Illinois at 25/50/20, are well below both.
Auto liability is written as three numbers, and almost nobody is told what they mean. Understanding them takes about a minute, and it is the difference between a claim that ends with your insurer and one that reaches your savings.
What the three numbers actually mean
| The number | What it covers | At 100/300/100 |
|---|---|---|
| First: bodily injury per person | Medical costs and damages for any one injured person | $100,000 maximum for one person |
| Second: bodily injury per accident | Total for all injured people in one accident | $300,000 maximum across everyone |
| Third: property damage | The other party's vehicle and property | $100,000 for the car, guardrail, storefront |
Anything above these limits is generally your personal responsibility. That is the entire reason the number matters.
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Get My Coverage Health ScoreWhy state minimums are rarely enough
Illinois requires 25/50/20, and also mandates uninsured motorist coverage at 25/50. Those are among the lowest figures in the personal insurance system, and they have not kept pace with the cost of a serious injury or a modern vehicle.
A single hospital stay after a serious crash can exceed $25,000 well before rehabilitation. A new vehicle can exceed $20,000 of property damage on its own. When the claim exceeds your limit, the balance does not disappear, it follows you.
What that gap looks like in practice
Say you are at fault in a crash that seriously injures one person. Their medical bills and lost wages come to $140,000.
At Illinois minimum (25/50/20): your policy pays $25,000. The remaining $115,000 is pursued from you. Wages can be garnished and assets can be attached.
At 100/300/100: your policy pays $100,000, leaving $40,000 of exposure.
At 100/300/100 plus a $1 million umbrella: the umbrella covers the remainder. Your exposure is the deductible.
The premium difference between the first and third scenario is usually far smaller than people expect, because liability limits are among the cheapest coverage you can buy per dollar of protection.
What to carry, by situation
| If this is you | Common recommendation | Why |
|---|---|---|
| Renting, few assets, older vehicle | 50/100/50 at minimum | Above state minimum without paying for protection you do not yet need |
| Homeowner, some savings | 100/300/100 | The benchmark Consumer Reports and the III cite |
| Homeowner with meaningful assets | 250/500/250 plus umbrella | Consumer Reports recommends this tier to keep insurers from reaching personal assets |
| High net worth | Maximum underlying limits plus $2M or more umbrella | See high net worth insurance |
Two coverages people skip and later regret
Uninsured and underinsured motorist
Roughly 30 million uninsured drivers are on US roads. If one injures you, your own UM coverage is what pays. Experts commonly advise setting it as close to your liability limits as possible. Illinois requires it at 25/50, which is a floor, not a target.
Comprehensive and collision
Often called full coverage, though there is no such thing. These are deductible-based coverages that repair your own vehicle. Required if you lease or finance, and worth keeping while the car is worth meaningfully more than the deductible plus annual premium.
Have a licensed advisor price the higher limits
Most people overestimate what better limits cost. We will quote your current limits against 100/300/100 and higher so you can see the actual difference.
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Car Insurance Limits FAQ
How much car insurance do I need?
Most experts recommend 100/300/100, which is $100,000 bodily injury per person, $300,000 per accident and $100,000 property damage. Consumer Reports and the Insurance Information Institute cite this as a reasonable balance. Homeowners with meaningful assets commonly move to 250/500/250 and add an umbrella policy.
How much liability insurance do I need?
Enough that a serious claim does not reach your personal assets. A practical way to set it: total your home equity, savings and investments, then carry liability limits plus umbrella coverage that meet or exceed that figure. Liability limits are among the least expensive coverage per dollar of protection.
What does 100/300/100 mean?
It is $100,000 of bodily injury coverage for any one person, $300,000 total bodily injury for everyone hurt in one accident, and $100,000 for property damage. Amounts above those limits are generally your personal responsibility unless an umbrella policy sits above them.
Is full coverage worth it?
Comprehensive and collision repair your own vehicle and are required on leased or financed cars. Once a vehicle is worth close to your deductible plus the annual premium for those coverages, the value of keeping them drops. Liability, by contrast, protects your assets and should not be reduced to save premium.
See What Better Limits Actually Cost
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DR
Reviewed by Dave Rysavy
VP, Personal Lines · Pro Insurance Group. Dave places personal auto and reviews liability limits against household assets for clients across 40-plus states.
General information, not advice. Coverage needs depend on your assets, household and state. The figures here are widely cited planning benchmarks, not a recommendation for your specific situation. A licensed Pro Insurance Group advisor will review your actual exposure before any coverage is placed.
Sources: 100/300/100 and 250/500/250 benchmarks, Consumer Reports citing the Insurance Information Institute, and The Zebra. · Uninsured driver estimate and UM guidance, The Zebra. · Illinois minimum limits 25/50/20 and UM/UIM requirement, Insurance.com and Insurance Geek. Verified July 2026.
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