How did you decide how much car insurance coverage to get?

Status
Not open for further replies.
paulri

paulri

Joined
Aug 14, 2015
Messages
2,442
Location
CA, USA
Our policy is for 100,000/300,000 (per person & per incident, for each of these categories: bodily injury, property damage liability, uninsured motorists). I am thinking of spending a bit more (just $14 more per month, for my wife and myself) to increase those numbers to $250,000/$500,000.

Since I've opened up the policy probably 10 years ago with this company (Mercury) neither of us have ever been in an accident. The only claim that has ever been filed (apart from tow truck reimbursements) has been when my Civic was stolen in january.

I don't think my policy is priced that high; I'm certainly not looking to move to a different provider, but when I put my oldest daughter on our policy, I'll probably shop around a bit unless I"m floored with how cheap mercury comes in.

But I am wondering--are there any rules of thumb you folks have used, when determining how much coverage to buy?

The chances of getting in an accident big enough to go over the 100K per person, 300K total limits are pretty darn low. And I do own my own home, FWIW.
 
Last edited:
You should talk with your agent. If you have an accident it is all about the settlement in my opinion. I had one almost 3 years ago. I believe the settlement for one person maxed out my $100,000 per person. It's unnerving getting a letter and call stating they may go after more than you are insured for. I increased mine to $300,000/$500,000. Also look at your home owners for the same reason. They might recommend an umbrella policy. Good luck
 
Originally Posted by Kansas_Ron
It's unnerving getting a letter and call stating they may go after more than you are insured for.


Only scares you the first time....
My son has had far to many accidents and everyone ends up with the other folks getting a lawyer. ( part of life in the big city).
One actually went to court and they "Won" far less than they were offered.

Get what you are comfortable with. Remember, the other guy can carry uninsured/underinsured also.

If you often transport other peoples children, get a large umbrella.

Best bet, discuss it with your agent.... that is what you pay him for.
 
I have brought it up, my agent didn't push one or the other (I called her; she just gave me the numbers). Perhaps I'll ask for some perspective. She sure wasn't pushy about getting the increase.

Other peoples' kids are often in our vehicles, but usually only until the ransom is paid, so I don't think that would be a factor for insurance. Seriously, we do give rides, so perhaps that would suggest the higher coverage. We're also thinking about an umbrella, but to have that, I'd have to get the increased car policy anyways, so this is the first step.

Originally Posted by KJSmith
If you often transport other peoples children, get a large umbrella.

Best bet, discuss it with your agent.... that is what you pay him for.
 
Last edited:
We had $250/500 30 years ago. If you have any significant assets, think about getting an umbrella policy instead. These days the awards are pretty ridiculous, and can be on the left side of insane in certain jurisdictions.

Also make sure you have uninsured motorist coverage, especially if you live in an area with lots of illegals and/or regular uninsured.
 
Originally Posted by NO2
We had $250/500 30 years ago. If you have any significant assets, think about getting an umbrella policy instead. These days the awards are pretty ridiculous, and can be on the left side of insane in certain jurisdictions.

Also make sure you have uninsured motorist coverage, especially if you live in an area with lots of illegals and/or regular uninsured.


So basically anywhere on planet earth?! Never been in a wreck with another driver where it was my fault. Hit many many doe and dear though.
 
The way I've had it explained is, think of insurance as being like a moat. There's no point in having high coverage for one risk and low coverage for another. Just like there's no point in having your moat narrow and shallow in some places, and deep and wide in others.

And primarily insure yourself against losses you can't afford. Glass coverage is nice but you can actually afford a new windshield, But you probably can't afford to lose a $1 million injury lawsuit.

It's not just who you carry in your car, you may injure people in another vehicle. Think "what if I hit a school bus?"

And do carry uninsured/under-insured motorist coverage. What if an uninsured crazy motorist leaves you or your wife paralyzed? You'd need lots of money to cover the extra expense through to age 95.

Finally, a really big policy costs very little more than a modest policy. The trick is getting one - you have to have a really excellent driving record before anyone will sell it to you.
 
I own a house, I maxed out the liability and bought an umbrella. I worked hard for it, I want to protect it.
 
Originally Posted by paulri
I have brought it up, my agent didn't push one or the other (I called her; she just gave me the numbers). Perhaps I'll ask for some perspective. She sure wasn't pushy about getting the increase.

Other peoples' kids are often in our vehicles, but usually only until the ransom is paid, so I don't think that would be a factor for insurance. Seriously, we do give rides, so perhaps that would suggest the higher coverage. We're also thinking about an umbrella, but to have that, I'd have to get the increased car policy anyways, so this is the first step.

...


Go sit down and talk to her, ask her for an opinion...

I'd consider 100/300/100 about minimum limits these days.
 
250-500 and umbrellas are cheap, 1 million for about 140 a year. If you have a house and assets you need the umbrella and especially if you have under 21 drivers on your policy. For under 21s sometimes better to have them get their own policy if affordable.
 
Originally Posted by Spector
250-500 and umbrellas are cheap, 1 million for about 140 a year. If you have a house and assets you need the umbrella and especially if you have under 21 drivers on your policy. For under 21s sometimes better to have them get their own policy if affordable.

I wish they were that cheap in NY.
 
I think it depends on where you live. I don't have much, but what I do have can't be taken from me. In Texas they can't take your house or garnish wages. Besides, how much is enough anyway? Say I'm driving along and clip a tanker hauling fuel. He hits a car, flips over, and spills fuel everywhere. One dead. Huge environmental cleanup and damage. With a bill that high, why bother? Nobody got insurance to cover that. They will sue you and try to come after you, but you can't get blood out of a rock. BTW, based on a true story.
 
You can potentially lower liability limits and to lower premium then add umbrella and have better coverage for same price or slightly more.

If you concerned about assets Umbrella (insurance) not only covers you for automotive but howe owners also. Shop around too on umbrella as its insurance you rarely if ever deal with.
 
Michigan has lots of uninsured motorist (+20%). After my wife was hit head on by one, we realized that $100,000 uninsured coverage was not enough.

[Linked Image]
 
Originally Posted by WhyMe
add up your assets and buy enough to cover what you have. on top of that buy an umbrella.

And if you do buy an umbrella, the insurance company will likely dictate a higher minimum coverage on your vehicles...at least that's how it worked for me.
 
Originally Posted by paulri
Our policy is for 100,000/300,000 (per person & per incident, for each of these categories: bodily injury, property damage liability, uninsured motorists). I am thinking of spending a bit more (just $14 more per month, for my wife and myself) to increase those numbers to $250,000/$500,000.

Since I've opened up the policy probably 10 years ago with this company (Mercury) neither of us have ever been in an accident. The only claim that has ever been filed (apart from tow truck reimbursements) has been when my Civic was stolen in january.

I don't think my policy is priced that high; I'm certainly not looking to move to a different provider, but when I put my oldest daughter on our policy, I'll probably shop around a bit unless I"m floored with how cheap mercury comes in.

But I am wondering--are there any rules of thumb you folks have used, when determining how much coverage to buy?

The chances of getting in an accident big enough to go over the 100K per person, 300K total limits are pretty darn low. And I do own my own home, FWIW.

I just bought an umbrella policy to cover my estate, along with carrying state max limits on vehicle. I also insure my practice, as well as my firearms. Insure ALL the things. And then I bought concealed carry insurance, and exteded warranty on my car, and a home owner policy. Hopefully I never need any of it, but if I do, then we can debate how it did for me.
 
Last edited:
Originally Posted by Fawteen
I wouldn't have less than the maximum medical and an umbrella policy to cover your assets.


That's what I do. Insurance seems like wasted $ until you need it.
 
Status
Not open for further replies.

Similar threads

GON
(marketing material) Collision Safety Consultants vs Progressive Insurance total loss
2
Replies
28
Views
1K
Doc8404
wings&wheels
Creative Solutions, or How to Get into a Car with a Bit of Sausage
Replies
8
Views
474
SammyChevelleTypeS3
T
Getting married; where to live?
3 4 5
Replies
93
Views
4K
TimeFlies
dnewton3
carry insurance - rates of coverage and denials obscured
Replies
4
Views
679
jhellwig
92saturnsl2
Auto insurance questions - UIM
2 3
Replies
50
Views
3K
Doc8404
Back
Top