Here are a few parameters which you should consider when evaluating higher coverage limits and comprehensive and collision insurance.
I have assets – If you own a house, have savings and you are making a decent salary, you probably do not want to risk them if you have an accident and the injured sues you for damages. Your insurance will only cover up to the limits on your policy and you are responsible for the remaining.
I have newer vehicle: If your vehicle is new or costs more than $5000, you should get collision coverage to pay for damages to your car in an accident. You should also consider comprehensive coverage – this will pay for damage to your car due to other reasons.
I park my car in the city/town - If you live in the city/town you are more likely to get hit or have a theft so you should consider collision and comprehensive coverage.
My spouse or kids also drive my car – then you may consider buying collision and comprehensive.
I have savings – If you can afford paying a higher deductible (keep the money in the bank) - just get the right coverage for you and increase your deductible for collision to $1000.
When you have car insurance, you’re responsible for paying everything that your insurance company doesn’t pay. So if you can afford it, it may be better to buy better coverage and pay upfront than risking your assets after an accident.