Should I have higher car insurance liability limits?

The higher your liability limits, the better off you will be if you are involved in a major accident.  Of course your premiums will be higher too. Lower limits allow your insurance company to take on less risk and results in lower premiums for you, as it lowers the maximum amount of money they will have to pay out in a claim.  It is highly recommended to increase your liability limits if you can afford the premiums.