How much auto insurance coverage do I really want?
We currently have BI 50/100, 50 prop bring down and 50/100 uninsured. Here are the details
- 2003 Cadillac Escalade EXT
- Married couple: Wife 27 & Husband 23
- No major tickets within the past 3 years. Husband have one fix-it ticket almost 3 years ago
- Renters not home owners
- No big ticket assets
- No kids
Answers:
You really don't enjoy much coverage at all!!
Listen to jcollins --- adjectives the commercials you see about attorneys getting their clients money - that's YOUR money. The insurance co will settle up to their limits, logically, but a serious accident and you're at responsibility? That could literally bankrupt you, and someone else will be driving the Escalade you worked so frozen to get away from an auction.
I would seriously consider raise your limits. The best entry to do is talk w/ a P&C professional in the region of what your assets are, and how much you could lose if you hurt someone.
It really comes down to how much do you stand to lose. You tabled that you do not own a home and have a small amount of assets, 50/100/50 is OK, I prefer 100/300/100 minimum, the cost difference is largely small, the biggest cost of auto insurance is the comp and collision coverage.
Everyone has given you great direction I will only incorporate that after all considerations if you are competent to afford the higher confines buy them, you never have satisfactory and you do need to protect adjectives earnings along near any assets you may currently have
The only fitting way to answer this is "you can never hold high satisfactory limits"...reason one is you don't know what can happen. As others enjoy said the limits you enjoy seem not bad, but what if you hit three kids crossing the street?
The only piece you can do is figure out what you can afford to spend on insurance and buy appropriate limitations. We don't sell anything smaller quantity than $250,000/$500,000 liability limits for personal auto and $500,000 combined single target for commercial auto. This way when someone get into a $75,000 accident they aren't running to us wondering why we solely "sold them" a $50,000 limit.
You only really inevitability the amount of coverage used in the event of a claim. Considering we can never predict when a claim will go down and for how much, we must decide ahead of time what amount of coverage we are comfortable next to. Not knowing very much in the order of your situation, I would say that you enjoy made a good declaration in the amount of coverage you purchased. I know you are not property owners, but if you plan on purchasing a home soon, or if you are professionals near a good income specifically growing, I would recommend your purchase 100/300/100 in coverage. If you form more than 100k and own a home I then would recommend an umbrella for 1 mill. Increasing the amount of liability coverage is usually inexpensive if the driving and claim documents are good. Hope this help.
Good guidance from everyone so far. I think the consensus is you should hold at least 100/300 to cover you and preferable 250/500 to protect your assets should you effect and accident near serious injuries.
What I don't see anyone address and I think it equally, except more important, is the stratum of uninsured/underinsured coverage (UM/UIM). This is coverage which would cover YOUR medical bills, wage loss, or other expenses due to injuries you incur in the event an uninsured or underinsured driver cause and accident and you're injured. An underinsured driver is one who have insurance but doesn't have dignified enough coverage to suitably compensate the other party or party. I've handled injury claims for abundant yrs and $50,000 is a drop in the bucket. What if an calamity left you unqualified to work for months or more and your medical bills were mounting? do yourself and your spouse a favor and get hold of a minimum of 100/300 and seriously consider 250/500any less and your laying a bet with your adjectives. You may think you'll never have need of it and hopefully you won't but you'll have the peace of mind surrounded by case you do.
You forgot wages. Future wages can be attached. Kids CAN'T be attached.
You involve to carry ends high adequate to cover your assets, which include not only your home, but stock & stash accounts, etc, AND three years future wages.
So if one of you is a brain surgeon making $500,000 a year, you want $500,000 on the auto liabiltiy, and a $3,000,000 umbrella.
With no major assets, and not much surrounded by the bank/stock accounts, just attach your salaries together, and project for the subsequent three years. Round up to the nearest standard auto limit.