Is 50/100 Car Insurance Enough Coverage? What Reddit Users Say

When purchasing auto insurance, one of the most important decisions is choosing your liability coverage limits. Liability insurance pays for damage and injuries you cause to others in an accident. The standard format for liability limits is 50/100/50, which stands for:

• $50,000 bodily injury liability per person
• $100,000 bodily injury liability per accident
• $50,000 property damage liability

But is this level of protection sufficient, or should you opt for higher 100/300/100 or even 250/500/250 limits? Feedback from Reddit users provides some helpful perspective on this common insurance question.

What Factors Determine Ideal Liability Limits?

According to Reddit posts on r/personalfinance and r/insurance, there are a few key factors to consider when setting your liability insurance limits:

• Your Assets – If you have significant assets to protect (like savings, home equity, retirement accounts, etc.), higher liability limits are advisable to avoid those assets being seized if you are sued. With only 50/100 limits, your assets could be at risk even in a moderate accident.

• Umbrella Policy – Many Reddit users with assets recommend pairing 50/100 liability with a $1 million umbrella policy to provide additional protection above auto policy limits at relatively low cost.

• The Coverage You Can Afford – Car insurance is expensive, especially for high-risk groups like teens and seniors. Choosing limits you can comfortably afford to pay while meeting state minimums makes sense for many.

• How Often You Drive – Frequent drivers and commuters face more risk exposure and may want to consider higher limits than someone who only drives occasionally.

• Where You Live – In major metro areas with high accident rates and vehicle repair costs, higher limits provide more adequate coverage compared to rural regions.

Why Some Reddit Users Opt for Minimum 50/100 Liability

Based on redditor opinions, here are some top reasons drivers choose to stick with 50/100 liability coverage:

• To Save Money – Minimum liability requirements provide the most affordable insurance. For some, the premium difference to bump up limits is too high.

• They Have No Assets – Young drivers or those without substantial assets don’t face severe risks from a lawsuit exceeding their limits. Lower coverage can suffice.

• To Meet Bank/Lender Requirements – If you have a car loan or lease, the financier may only require minimum liability limits by law.

• Less Risk Exposure – Low mileage drivers, like using a car just for errands rather than commuting, have limited risk so minimum coverage is adequate.

• Umbrella Policy as Supplement – Some maintain 50/100 on their autos and supplement with higher umbrella insurance limits for added liability protection.

Why Reddit Users Recommend Higher 100/300/100 or 250/500/250 Limits

Here are some key reasons Reddit users strongly push drivers to consider higher liability limits beyond the minimum 50/100:

• Lawsuits Are Common – It only takes one serious accident to result in getting sued. Legal and court costs add up fast. Higher limits become critical.

• Medical Bills Are Expensive – Hospital/doctor bills from even minor injuries can exceed $50k quickly. Larger limits give you a much safer buffer.

• Numerous Large Claims – Multi-vehicle pileups, injuries to multiple parties, and extensive property damage can lead to multiple claims that drain 50/100 limits fast.

• You Have Assets to Protect – With substantial assets, redditors overwhelmingly favor limits of at least 100/300/100 to safeguard your finances and property from lawsuits.

• Peace of Mind – For a fairly small premium increase, higher limits provide significant additional protection and peace of mind if you caused extensive accident injuries.

• Vehicle Repairs Are Costly – With parts shortages and high labor rates, even relatively minor repairs can eat through $50k property damage coverage fast these days.

Tips from Reddit on Choosing Liability Limits

Drawing on firsthand insurance experiences, here is some of the best advice Reddit users offer on selecting adequate liability coverage:

• Start with state minimums required, then consider going higher to protect your assets based on your unique situation.

• Insure your car for its actual cash value or less – Redditors caution against overinsuring your vehicle at inflated values.

• Get quotes with different limits to see the premium difference, which is often surprisingly small to step up 50/100 to 100/300/100.

• Pair 50/100 with an umbrella policy for affordable liability supplement. Just confirm the umbrella applies to auto claims.

• 100/300/100 provides pretty solid coverage for a moderate increase in cost over minimums. Consider it baseline coverage.

• If assets are substantial, go up to 250/500/250 or higher limits. Some recommend $500k or even $1 million per accident.

• Pick a deductible you can afford like $500 or $1000 to balance premium costs and out-of-pocket risk.

• Ask about bundling home and auto policies for a multi-policy discount to help offset increased premiums for higher liability limits.

The Consensus: Most Reddit Users Advise Going Above 50/100

Analyzing numerous Reddit threads on liability limits reveals a clear consensus among users:

• The large majority agree that state minimum 50/100 liability limits are inadequate protection for most drivers.

• Many regretted initially buying just minimum coverage, then having to increase limits later which costs more long-term.

• Redditors almost unanimously tell drivers to purchase higher 100/300/100 or 250/500/250 limits if at all possible.

• For valuable assets and property, large umbrella insurance layered on top of auto policy is also strongly advised.

• Overall, Reddit users warn others not to take the huge financial risks that come with minimum 50/100 liability limits. The small premium increase is worth it.

• However, a select few said 50/100 can be sufficient for very low-income individuals with minimal assets and infrequent driving. But most still recommend exploring affordable options to increase limits.

Tips for Lowering Your Auto Insurance Premiums

Here are some tips Reddit users provide for keeping car insurance costs down while still securing adequate liability limits:

• Raise deductibles to $500+, accepting higher out-of-pocket costs in a claim to reduce premiums.

• Drop unnecessary coverage like collision/comprehensive on older, low-value vehicles.

• See if usage-based programs like Progressive’s Snapshot can score you a discount for safe driving habits confirmed by an app or device.

• Take a defensive driving course which can earn you a decent discount on your premiums.

• Ask about all possible discounts like good driver, good student, multi-car, etc. Discounts add up fast.

• Bundle home and auto insurance with the same provider for multi-policy discount savings.

• Maintain good credit since insurers use credit-based insurance scores heavily in setting rates.

• Buy an older used car since they are much cheaper to insure versus new vehicles.

Overall, most Reddit insurance experts strongly push drivers to go above minimum 50/100 liability limits to properly safeguard assets without breaking the bank. But focus first on finding the most competitive rates, then use available discounts to help offset the cost of increased coverage. While it requires some effort, getting good liability insurance tailored to your situation is truly fundamental to sound financial protection.