If you were injured in an auto collision, had to spend three day in the hospital, loose two weeks of work and sustain a long tern partial disability, how much liability would you want the party causing the injury to carry?
So, how much should you carry? The are two primary areas to consider. Although we cannot predict the future, first, you would want to carry at least an amount sufficient to meet the needs of a person you injured with your car. Second, the liability you carry should be sufficient to protect you from having to pay for any part of the accident from your own funds. (Any settlement over and above the amount of insurance you carry can cause you to be sued, personally, to pay for the amount of loss in excess of the amount of insurance you carry).
Many people think that carrying to minimum liability coverage saves them money. However, if they cause a severe accident and there is not enough insurance to cover the loss, they will become the loser. The perception is that by increasing their auto liability limits their premium will increase proportionately. This is not true. It is possible to carry higher limits without seeing a huge increase in premium.
When selecting the amount of liability coverage keep in mind that you are protecting yourself as well as the other person. You can be helping yourself, and the other guy, by bumping up those liability limits.