Auto Insurance Limits: How to Pick Them Without Guessing

Picking auto liability limits should not feel like roulette

Most people choose auto liability limits one of three ways:

None of those are great.

Here’s a calmer way to think about it.

First: what liability actually is

Liability is the part of your auto coverage that pays for damage or injuries you cause to someone else.

It is not about your car.

It is about what happens if you accidentally change someone else’s life with one bad moment.

The “no guessing” framework

I like to use a simple question:

If I caused a serious accident tomorrow, what would I want in place to protect my future?

Not “what’s the minimum.” Not “what do most people do.”

Your future.

A practical way to choose limits

Think in scenarios, not numbers:

If those scenarios feel even remotely possible, minimum limits are basically a rounding error.

Where umbrella insurance fits

Auto liability is usually the foundation for umbrella coverage.

If your auto limits are low, an umbrella is either:

This is why I tend to view auto limits as part of your overall liability plan.

The real goal

You’re not trying to “win” insurance.

You’re trying to buy enough protection that:

What to do next

If you want a quick review, send over:

I’ll tell you if the limits make sense together.

No pressure.

Just clarity.

Our agency policy on minimum limits

At our agency, we have a company policy: we don't recommend anyone writing limits below 100/300/100.

That means:

This isn't arbitrary.

Even the state of California recently raised its minimum liability limits because the old minimums were no longer realistic given:

If the state had to adjust upward because the old floors weren't cutting it, that tells you something.

We set our internal floor higher because we believe in protecting your future, not just meeting a legal requirement.