Liability Coverage Calculator

This calculator estimates how much bodily-injury (BI) and property-damage liability coverage you should carry on your auto policy, based on how much of your net worth and future income a lawsuit judgment could reach. It adds Other Net Worth, Home Equity, and Savings & Investments into a single Total Asset Exposure figure — the three are separate inputs specifically so nothing gets counted twice — then adds three times your Annual Income (courts can garnish future wages), and recommends a per-person BI limit between $100,000 and $500,000 based on that combined exposure. Total Asset Exposure is the input this recommendation responds to most: because it feeds both the per-person BI limit and the property-damage limit, raising it moves the recommended coverage more than any other single input. Recommended BI per Accident is simply twice the per-person figure, a common simplification -- real per-accident-to-per-person ratios typically range from 2x to 3x depending on the insurer and limit tier (not a separate calculation), and the Current Coverage Gap and Estimated Annual Premium Increase compare your entered Current BI Limit against the recommendation.

This tool does NOT know your state's actual minimum liability requirements, your insurer's actual rate table, your driving record, or your vehicles' values — the premium increase shown is a rough per-$100,000 rule of thumb, not a quote. It also does not account for excess/umbrella liability policies, which many financial advisors recommend once net worth exceeds what auto liability alone can cover. Number of Vehicles affects only the estimated premium increase, not the recommended coverage limits themselves — the limits are sized to your assets and income regardless of how many vehicles you insure.