Am I carrying too much coverage on my auto policy?

Would I ever really need 250/500/100 coverage? The dealer signed me up for my current auto insurance policy and I am paying about $175 per month. I decided to shop for a lower rate and realized the limits he chose for me are extremely high compared to what most people carry.

Answer provided by
Shannon Martin
Answered on Jun 24, 2021
Shannon is an expert in personal lines liability insurance with 13 + years of insurance industry experience. She also served as a special insurance liaison to AARP members for 6 of those years. She is a graduate of UL Lafayette and currently resides in NY with her family. Shannon is also an amateur juggler, ukulele player, and is a time travel paradox theory enthusiast.
“This is a great question! Yes, the limits you are currently carrying are higher than average. The recommended limits for most people are 100/300/50 because this is affordable and will cover you for most accidents. But it might not fully cover you for all accidents.
No one wants to think that they can cause a catastrophic accident, but it happens. The average cost for a new car is around $37,800. You currently are carrying $100k for property damage. If you cause an accident that totals two cars, you are most likely fully covered. If you have the average limit of $50k, you would have to pay around $25,000 out of pocket.
Property damage also covers things like:
  • stop signs
  • street lights
  • fences
  • houses
The cost of health care is always on the rise, so having more than the average bodily injury liability insurance coverage is a good idea as well.”

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