25/50 seems ridiculously low. Even my dirt-cheap-who-cares-I'm-single-and-don't-have-a-penny-to-my-name-insurance I had when I was a teenager was 50/100. Thinking of a couple payouts that extended family members have received as a result of minor accidents, they've all been at least $25k, probably more in the $30-60k range. Also, the property damage portion covers the damage to another person's car. At $25k - what do you think the likelihood will be that if you total another car, that car will be worth $25k or less? Probably depends on where you live. In my area we don't have too many expensive ($75k+) cars, but lots and lots and lots of minivans and SUVs that are in the $25-40k range.
The way I've been taught to look at insurance, is if the consequences of being sued beyond what your insurance covers is small (i.e. I'm a single teenager, and they sue me for $100k - whoop-de-doo I go bankrupt and they take my car and I don't have anything else), then by all means save some money on insurance. If however, you have decent assets, and you don't want them to be able to take your house, your savings, and maybe other assets, you should probably buy enough coverage to handle a more expensive, but still foreseeable outcome. Final caveat - if your net worth is so high that on the off chance you do have to pay out $500k or more in a worst case scenario that you caused someone's death or something, and $500k is no big deal for you, then by all means "self-insure", and only pay for the minimum you're legally obligated to carry in your state (or, the minimum you think is reasonably likely to happen that you'd rather the insurance company cover).
