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How much liability insurance is necessary for someone with limited assets?

I am a recent college graduate and just accepted a new job. I have my car (paid off), but no other assets. I am keeping full coverage because the car is worth close to $9,000, but how much liability do I really need if I don’t own anything else?

avatar
Shannon Martin · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“Congrats on the new job! Even without significant assets, you should consider keeping sufficient
liability insurance
to cover you in the event of an accident.
Most agents will likely recommend keeping limits of $100,000 per person and $300,000 per accident for
bodily injury liability
, and at least $50,000 per accident for
property damage liability
.
Although some will advise lower limits, reasoning that you have limited assets, your future income is also an asset that should be considered. As things like your savings account and 401(k) grow, so should your liability protection.
If you decide to go with lower liability limits, compare the cost of increased limits frequently and raise your limits as soon as you are able to. “
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