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Is a 50/100/50 liability insurance policy too much coverage?
I'm a 26-year-old man and I'm buying my first car. I was looking at policies, and I thought I should get more than just minimum liability coverage. But is 50/100/50 liability insurance too much coverage if I just go to work and come home?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
If anything, a 50/100/50
liability insurance
policy is too little coverage because of the costs associated with a major car accident.Think of it this way: Insurance exists to help you cover costs if you get into an accident. After a semi-serious accident, you may need to pay for someone else’s medical care, car repairs, lawsuits, property damage, or even
a loss of income
—and those costs can add up.- A few days in the hospital: $100,000
- New car replacement: $50,000
- Average settlement in car accident lawsuit: $23,000
50/100/50 means you have $50,000 for
bodily injury
caused per person, $100,000 for bodily injury per accident, and $50,000 for property damage
you cause. If you get into an accident with another commuter and they sue you for damages, you may not have enough coverage.You might want to consider a
100/300/100
or 250/500/250 policy. For just a bit more money per month, you can protect yourself from financial duress in the event of an accident.It’s incredibly important to have sufficient liability limits, which is why experts recommend buying as much liability coverage as you can afford.
Lower limits: You’re vulnerable to legal obligations to pay out high out-of-pocket costs.
Higher limits: You’re better protected against lawsuits for your financial well-being.
Lower limits should only be considered as a last resort, if you have few or no assets, or if you have limited future earning potential. Remember, liability only covers damage you do to others, not damage or injuries to yourself or your own property.
View full answer
- Gregory R.
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