Insurance limits

[BD2003]

When dealing with liability insurance, you have the option of choosing the amount of coverage you want - 50/100, 100/300 etc.

I personally dont have much if any assets to my name, far less than 50k, so do I really need anything but the minimum? What would happen if I were to do more damage than I'm covered for?

 

[compman25]

Better hope you're not sued either if you cause an accident. If you don't have the coverage to cover a judgement you'll end up paying out of your pocket.

 

[BeauJangles]

Originally posted by: compman25
Better hope you're not sued either if you cause an accident. If you don't have the coverage to cover a judgement you'll end up paying out of your pocket.

And if you don't have that many assets, you'll probably be forced to declare bankruptcy which will ruin your credit and your life for years. Seems pretty logical to just max out your liabilities coverages.

 

[Pariah]

The most you can afford. Insurance isn't for when little Bobby down the street cracks your windshield with a baseball. Most people can afford to replace a window out of pocket without being ruined. Insurance is for when you total a Lamborghini while crippling the driver and passenger in the process and get sued into oblivion. It's disaster prevention. The less you own, the more you need, not the other way around.

 

[CRXican]

100/300

 

[Shortcut]

For folks who own a home, do you guys get an umbrella policy or just home+auto?

 

[Vette73]

50/100 is more then enough for most. You need to look at your driving habits and your life. In NC i think Min was 30k, mnaybe it has gone up since then. That is all I had till I moved to VA. We went up to 100/300 just because we have a child on the way, house, etc... so between that and also discounts for all the tings we can get the price difference was very small, like $40 or so extra 6months.

 

[compman25]

Originally posted by: Shortcut
For folks who own a home, do you guys get an umbrella policy or just home+auto?

We have a home+auto policy, and we both work in the insurance industry if it matters.

 

[alkemyst]

Originally posted by: compman25
Better hope you're not sued either if you cause an accident. If you don't have the coverage to cover a judgement you'll end up paying out of your pocket.

not necessarily.

Insurance is one of those things where those in fear pay way more than they need.

Your agent should be able to give you a good assessment.

When I was renting I carried 25/50/25. Now that I own a home I am carrying 100/300/100.

State laws make a big difference. Here they cannot sue you and go after the policy too. They have to choose. I am sure if there are extreme negligent issues then they may be more lenient on an injured person, but you'd have to be coked up and driving drunk more than likely.

 

[DomS]

I have like 10/30 or something. I don't have anything to take and I don't drive much.

 

[Zorba]

My wife and I are both engineers, so our incomes are huge "assests," so we carry 250/500/100. We have been planning on getting a 1M umbrella but haven't gotten around to it. The umbrella is only an extra 140 a year.