When thinking about liability coverage, you want to consider the assets you are trying to protect. In the event of an at fault accident, you could be legally responsible for bodily injury and/or property damage to another. If the damage exceeds your liability limit, you could be on the hook for the rest.
Fifteen years ago, the 100k/300k/100k auto liability limits were the norm, and in most cases, they were sufficient. Over time, however, these limits need to be adjusted. Why? For many reasons. One of which is inflation. Inflation erodes purchasing power (ex/the cost to repair/replace a vehicle increases) and increases the nominal value of assets like your home (a home purchased 15 years ago has likely appreciated in value since). In addition, as you move forward in life and build your wealth/assets additional limit is recommended.
So, should you be purchasing higher liability limits? If you answer YES to any of the following questions, then...
BUY HIGHER LIABILITY LIMITS!!!
Is your home worth more than $100k?
Does the value of your assets add up to more than $100k?
Could it cost more than $100k to replace another person’s vehicle?
Could it cost more than $100k to send someone to the hospital for injuries?
Could it cost more than $300k to send 2 or 3 people to the hospital for injuries?