Is 50 100 50 Good Liability Insurance
50/100/50 is a solid mid-range limit that covers most everyday accidents without stretching your budget thin.
What 50/100/50 means for your new car
- The three numbers The first two numbers cover injuries to other people per person and per accident. The third covers damage you cause to someone else's car or property.
- It's about them, not you These limits pay for the other driver's medical bills and repairs, not your own car or injuries. You need separate coverage for that on your own vehicle.
- Check what your state requires Minimum limits vary by state and 50/100/50 is above the minimum almost everywhere. Look up your state's required minimum so you know how much cushion you actually have.
- Match it to what you own If you have savings, a home, or other assets, a lawsuit after a bad accident could go after them. Higher limits cost little more and protect more of what you've built.
- Lenders want more than this If you're financing, your lender almost certainly requires collision and comprehensive coverage too, not just liability. Ask the lender directly what they require before you sign.
The short version
50/100/50 is good, solid coverage above minimum in most states, and it protects you from paying out of pocket if you injure someone or damage their property. It doesn't cover your own car. Decide if your assets call for more, then get quotes at that limit.
Should I get higher limits than 50/100/50?
It depends on what you have to protect. If you own a home, have meaningful savings, or a steady income that could be garnished, higher limits are worth the small extra cost. A serious accident can produce medical bills and legal claims that go past 50/100/50 quickly, and if that happens you are personally on the hook for the rest.
If you have few assets and a tight budget, 50/100/50 is a reasonable place to land. You're covered well above the minimum in most states, and the extra cost of going higher may not be worth it yet. As your finances grow, it's worth revisiting the decision, because the right limit for you now isn't necessarily the right one in a few years.
Compare quotes at 50/100/50 now that you know what it covers and whether it fits your situation.
A private sale with an older car and no dealer to guide you
Say you just bought a ten-year-old sedan from a private seller. You're driving it home today, there's no dealer involved, and you still need to handle the title transfer yourself. You call your insurer to add the car and they ask what liability limits you want. You're not sure if your old limits still make sense now that you're buying something different.
You think about what you have to lose. You don't own a home yet, but you have some savings you'd hate to see disappear in a lawsuit. You choose 50/100/50 because it's a step above your state minimum without a big jump in cost, and you decide against full comprehensive and collision since the car's value doesn't justify the extra premium. Your insurer confirms the coverage starts right away, so you're protected for the drive home and the paperwork gets sorted over the next few days.
The right limit depends on what you have to lose, not just what a car is worth.
