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Why do I have to carry such high liability limits on my auto policy?

"I am shopping insurance rates for my first car and my mom keeps telling me that I have to set my coverage limits at 100/300/50. But I can save a lot of money by opting for the state minimums. Why would I need such high limits?"

avatar
Shannon Martin · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“Mom has the right idea!
The
liability coverage
limits that are recommended for most people are 100/300/50. Except for catastrophic losses, most accidents that occur are at or below this threshold.
If you carry a state minimum of 25/50/25 and have a loss that exceeds these limits, you will have to a pay out of pocket for damages, and possibly from any future earnings you may have. The cost of healthcare keeps rising so this option does put your assets in danger.
If you can’t afford the preferred limits right now, you will want to start your policy with the highest options you can afford and then increase your coverage at a later date.
You may also be able to find better insurance rates by comparing
car insurance quotes online
. The free app
Jerry
can help! Jerry shops with over 45+ carriers and to ensure you always have the lowest rate, Jerry will send you new quotes every time your policy comes up for renewal.”
View full answer 
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.

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