Liability Coverage Calculator
Determine your recommended auto liability limits based on your net worth, assets, and income exposure.
Financial Disclaimer
This calculator is for educational purposes only and does not constitute financial advice. Results are estimates based on the inputs provided. Consult a qualified financial advisor before making investment or financial planning decisions.
Inputs
Results
Recommended BI per Person
$450,000.00
≈ 11 Teslas
How to Use This Calculator
- Enter your Net Worth including Home Equity and Savings & Investments.
- Input your Annual Income to factor in wage-garnishment risk.
- Set the Number of Vehicles insured on the policy.
- Enter your Current Bodily Injury (BI) Limit per person to see if it's adequate.
- Review the Recommended BI per Person, BI per Accident, and Property Damage limits based on your assets.
What each input means
- Net Worth
- Your total net worth including all assets minus liabilities.
- Home Equity
- Equity in your primary residence. This is at risk in lawsuits.
- Savings & Investments
- Bank accounts, brokerage, and other non-retirement liquid assets.
- Annual Income
- Gross annual income. Courts may garnish future wages in a judgment.
- Number of Vehicles
- Total vehicles on your auto insurance policy.
- Current BI Limit (per person)
- Your current bodily injury liability limit per person.
How this is calculated
Worked example, using the default values
- Identify Input Parameters4 parametersNet Worth = 300000, Home Equity = 150000, Savings & Investments = 100000, Annual Income = 85000 = 6 input(s) provided
- Calculate Recommended BI per PersonRecommended BI per Person450000 = $450,000
- Calculate Recommended BI per AccidentRecommended BI per Accident900000 = $900,000
- Calculate Recommended Property DamageRecommended Property Damage100000 = $100,000
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