Carrying only the state minimum required liability limits may result in the cheapest car insurance premiums, but it could also put you at a major financial risk. If you are involved in an at-fault accident and the costs are higher than your car insurance limits, you’d be responsible for paying the excess out of pocket. This is more likely to happen when having lower insurance limits. Raising your liability limits typically has a small impact on your insurance rates — around a few dollars more each month — while adding collision and comprehensive is more expensive than that. However, both policy options may save you more in the long run compared to state minimum insurance.