is 50 100 insurance enough reddit

#Is $50,000/$100,000 Auto Insurance Enough Coverage? A Detailed Look at Recommendations from Reddit Users

Deciding on the right amount of auto insurance coverage can be tricky. You want to make sure you’re fully protected in case of an accident but you don’t want to overpay for coverage you don’t really need either. So how much is actually enough?

This is a question many drivers wrestle with, and one that recently came up in an /r/Insurance Reddit thread started by a user considering upping their coverage from 50/100/50 to 100/300/100

Here we’ll take a closer look at the perspectives shared in that discussion to help you determine if $50,000/$100,000 (50/100) split limit liability coverage meets your needs or if going with higher 100/300 limits makes more sense

What is Split Limit Liability Coverage?

Liability insurance is a mandatory component of auto insurance in most states. It covers bodily injury and property damage that you cause to others if you’re found legally responsible for an at-fault accident.

Split limit plans provide separate coverage limits per person and per accident. With 50/100 coverage:

• $50,000 limit per injured person
• $100,000 total limit per accident

So if you caused an accident injuring three people, the max payout would be $50,000 for each person, for a total of $150,000. The per-accident limit caps the total payout at $100,000.

The Reddit Discussion: Is 50/100 Enough?

The original Reddit poster asked:

“I currently have 50/100/50 coverage. I’ve been considering upping it to 100/300/100 but wanted some opinions. I have a perfect driving record and have never been in an at-fault accident. I live in an area without a lot of traffic or pedestrians. Is the 50/100/50 enough or should I up it just to be safe?”

Overall the responses indicated that while 50/100 meets state minimums nearly everywhere, most Redditors felt it makes sense to carry higher 100/300 limits if you can afford the premium increase.

Here’s a summary of the key perspectives:

Recommending Increased Limits

Many responders advised going up to 100/300 if possible:

• “I would increase it. $100k can easily be surpassed with just a few days in the hospital.”

• “I would increase limits if you can afford it. $100k isn’t much these days if there are multiple parties injured.”

• “Considering how litigious people are today and how high medical costs are, 100/300/100 seems much safer. The premium difference is usually pretty small.”

• “I don’t think it can hurt to increase limits as long as it doesn’t stretch your budget too much. Accidents can easily lead to 6 figure medical bills/lawsuits.”

• “I upped my limits when I bought a house just for liability protection. I think it’s worth the extra $15 or so per month for peace of mind.”

The main themes were that medical costs and lawsuit judgments keep rising, so $100k total per accident can be consumed pretty quickly with multiple injured parties. Many felt the relatively small premium increase was worth it for the extra protection.

Situations Where 50/100 May Suffice

However, some said 50/100 could be adequate depending on your personal situation:

• “If you have substantial personal assets to protect, umbrella insurance can give you additional liability coverage for relatively low cost.”

• “If you live in a state with no-fault auto insurance, the chances of getting sued after an accident are lower, so 50/100 is probably fine.”

• “As long as you don’t have many assets at risk, 50/100 should meet minimum requirements. Just know the risks if you get sued.”

• “I’ve had 50/100 for years with no issues. But I don’t own a home or have many assets to protect.”

The gist was that if you have minimal personal assets, carry a personal umbrella policy, or live in a no-fault state, sticking with lower 50/100 limits may be fine since the risks of getting sued for amounts above $100k are lower.

Key Factors in Deciding on Limits

Based on the back and forth, here are some of the main considerations when choosing between 50/100 and 100/300 auto liability limits:

Your assets – If you own a home or have substantial savings or investments, higher limits help protect assets from being seized if you are sued. With minimal assets, the extra coverage is less crucial.

No-fault laws – In no-fault states like Michigan and New York, accident claims typically go through your own insurer no matter who was at fault. This reduces the risk of getting sued directly.

Likelihood of accidents – If you have a perfect driving history and defensive driving skills, you may feel more comfortable with lower limits vs. a riskier driver who should opt for more coverage.

Premium costs – Look at the exact premium difference when getting quotes. While higher limits cost more, the increase may be just $10-$30 a month.

Umbrella insurance – Umbrella policies add several million in extra liability coverage at relatively low cost. They can supplement lower auto policy limits.

Litigation trends – Settlements and jury awards keep rising. This makes lawsuits more likely after a major accident. Higher limits offer more protection.

Expert Opinions: When to Consider Raising Limits

Many insurance experts suggest opting for 100/300 over the minimum 50/100 level of coverage if you can swing the premium increase.

“In this litigious society, lawsuits are common after auto accidents,” says Ray Sanchez, an independent insurance agent with 33 years of experience. “Medical costs have greatly outpaced inflation as well. Even minor injuries can lead to $50k in bills pretty quickly. With multiple parties injured, $100k total can disappear fast.”

Sanchez recommends drivers purchase as much liability coverage as they can reasonably afford, especially those with assets to protect. He notes that going from 50/100 to 100/300 often costs only $10-20 more per month.

According to Nicole Napilton, a State Farm insurance agent, “Lawsuits are expensive to defend even if you did nothing wrong. Out-of-court settlements average $25,000-$35,000. If just two people suffer significant injuries in an accident you cause, your 50/100 policy can easily be exhausted.”

Napilton advises drivers bump up to 100/300 limits whenever possible. “It’s a little more money for a lot more peace of mind,” she says. “You don’t want to risk having your wages garnished or assets seized if you get sued beyond your policy limits.”

The Bottom Line

While the state-required minimum 50/100 liability coverage may be sufficient for some drivers, the relatively small investment to increase limits to 100/300 is worth considering.

Higher medical costs, rising lawsuit awards, and the prevalence of legal action make the extra coverage a wise choice if you can afford the premium bump. Protecting your assets and future earnings has value.

At the same time, factors like no-fault insurance laws and personal umbrella policies may allow you to stick with lower 50/100 limits without too much risk, depending on your situation.

Carefully weigh the factors discussed here when making your auto insurance coverage decisions. Knowing the risks and benefits helps ensure you’re carrying adequate protection at a premium cost you can handle.