Did I make a mistake in raising my insurance coverage limits from California's minimum coverage?

I recently raised my insurance coverage limits from the state minimum to $100,000/$300,000 for bodily injury and $50,000 for property damage. Was this a mistake? I'll be paying more monthly and read somewhere that your liability limits should cover your net worth. The minimum coverage I previously had did that.

Answer provided by
Emily Maracle
Answered on Apr 30, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.
“The right insurance coverage varies from person to person, but less is not more when it comes to car insurance.
Increasing your coverage limits for bodily injury liability, or any other coverage on your policy, will always increase your rates. However, this also means you will be protected in the event of an accident.
The state minimum you had may cover your current net worth, but you also want to think about the future. If you get into an accident and the cost of damages or injuries exceeds your current net worth or what your policy covers, you could be sued for future wages.
You made the right decision to increase your coverage, but still, shop around! Take a look at other carriers in your area and see what they offer for the coverage you have now. You can be properly protected while still paying an affordable rate.

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