The minimum liability coverage in many states is $10K. However, every major insurance company insists they always recommend $100K. The average liability claim in an auto accident is around $15K.
However, if you look at that and think, hey, I have liquid funds, $10K - $100K isn't that big a gap for me, and if $15K is the average then $10K seems like a pretty good economic level.
Guess what? The insurance companies have decided that having the minimum $10K worth of coverage means that you are exhibiting high risk behavior and you get to pay more if you ever want to increase that compared to those who already have it, say to $25K when you get married and your wife is more nervous about it.
Oh, you want to shop around do you? Well they also target other insurance companies who primarily market themselves as selling those $10K policies that the larger companies refuse to write. Your high-risk tag will hit if you are coming from one of those (like the General) regardless of your coverage.
I'll repeat that in case its unclear. I have to pay more for my legally required insurance because I didn't want to buy more than what I am legally required to buy. I am being punished because I didn't buy what they preferred to sell me from the companies they preferred me to buy it from.
But once I behave "correctly", by paying more for a policy from one of the correct insurance companies with the arbitrary minimum the insurance companies prefer, they will bless me by removing my high-risk tag after 6 months. Thanks.