auto insurance question...

[TrumpetDoc]

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Hey all,
Was talking with a friend and it seems I am drastically under insured with regards to auto...
From what he was telling me, it is a lot less to do with your "car", in fact he said that was not a big part at all.
He is concerned that I "should" be having the max 250/500K coverage and then an umbrella on top. He made a really good point, that I never thought about (owning rather frumpy cars I never thought about auto insurance much🙂
If I am in a collision and God forbid its my fault and the other party gets wind of my income...then I will be sued for $$$ over my paltry limits....and this is much less likely if there is some meat in the policy for the taking.
Does this make sense? it will be a HUGE increase in premiums.
Sound?? Seems like it to me.

Thanks!

 

[la gringa]

my parents, who both work in insurance, have been telling me the same thing for years... and i have maxed out limits.

my lawyer for my PI case (long story) says he advises his professional clients to have at least $500k in liability coverage... people can and will go after you, it's a sad sad world.

 

[EdibleEgg]

Hey all,
Was talking with a friend and it seems I am drastically under insured with regards to auto...
From what he was telling me, it is a lot less to do with your "car", in fact he said that was not a big part at all.
He is concerned that I "should" be having the max 250/500K coverage and then an umbrella on top. He made a really good point, that I never thought about (owning rather frumpy cars I never thought about auto insurance much🙂
If I am in a collision and God forbid its my fault and the other party gets wind of my income...then I will be sued for $$$ over my paltry limits....and this is much less likely if there is some meat in the policy for the taking.
Does this make sense? it will be a HUGE increase in premiums.
Sound?? Seems like it to me.

Thanks!

My eyes were opened when my mother, a retired teacher, was in an accident with a 19 year old who is now a c4 quad. She had minimal coverage.

Why the huge increase in premiums? My umbrella policy only costs 300 to 400 bucks a year.

 

[pinipig523]

Currently I'm at max 1MIL for auto... but I'm planning on checking out an umbrella policy when I buy a house and adjusting accordingly.

 

[TrumpetDoc]

Yea from what he tells me,...
Given my income should have at least 250/500k auto plus umbrella.
I won't even say how much u have in coverage now (grandfathered in essentially from my student years), but it is faaaar less.
🙂


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[The White Coat Investor]

I have $300K in both auto and home liability with an umbrella policy on top of both. This is the way most do it. The umbrella policy will require you to raise your limits on the other policies to a certain amount, then it will provide you $1-5 Million above and beyond.