Every state sets a minimum auto liability requirement, and it's tempting to treat that number as "enough." In most cases, it isn't. State minimums were set to establish a legal floor for driving, not to reflect what a modern accident actually costs.
Why minimums fall short
Many states still require liability limits in the range of $25,000–$50,000 in bodily injury coverage per person — a figure that hasn't kept pace with the actual cost of serious injuries, let alone a modern vehicle. A single ER visit and short hospital stay can exceed $25,000 on its own; a serious injury with ongoing care easily runs into six figures. If your liability coverage runs out before the claim does, you can be personally on the hook for the remainder.
A better way to size your limits
Rather than defaulting to the state minimum, size your liability limits to roughly match your assets — savings, home equity, and future earnings potential are all technically exposed in a lawsuit that exceeds your coverage. A common recommendation is 100/300/100 (that's $100,000 per person, $300,000 per accident in bodily injury, $100,000 in property damage) as a reasonable baseline for most households with meaningful assets, with an umbrella policy layered on top for higher net worth.
Don't forget uninsured/underinsured motorist coverage
Your own liability limits don't protect you if someone else hits you and doesn't carry enough coverage. Uninsured/underinsured motorist coverage fills that gap and is often inexpensive relative to the protection it provides — yet it's one of the most commonly declined or underfunded coverages on a policy.
What about collision and comprehensive?
Whether you need collision and comprehensive coverage is a separate question, mostly driven by your car's value relative to the premium cost, not your liability exposure. Liability protects other people from you; collision and comprehensive protect your own vehicle.