How Much Coverage Do You Think I Need?

[RooflessVW]

As much as you can afford.

The difference between state minimums (NC) and more or less maxed-out coverage with $0 deductible was ~$120/6mo. Worth it, I think.

With luck like mine, an uninsured motorist driving a van full of children would send me flipping into a hazmat truck that would rupture and dump its load on a protected forest and simultaneously shut down I-95. If I'm going to have insurance, it may as well be good.

 

[BISCUT]

How does one know if they need 50k/100k/50k (which is what I have now), 100k/300k/100k, or 250k/500k/100k liability coverage and uninsured motorist coverage?
It doesn't cost that much to add on better coverage.
I'm 69, don't drink, and I only drive about 4k miles a year in Upper East Tennessee.
The lady at Progressive told me she's not qualified to inform me on this.

The 100k in 100k/300k/100k is for someone else's vehicle if I hit them and they sue me for up to 100k.
Most cars on the road are worth much less than 100k, so it seems the 100k should be enough coverage for me.

I did not read all the pages of this thread so forgive me if this advice has already been given.

Many view their auto policy in isolation so to speak. If you bundle home, auto, etc... its often rather inexpensive to add an umbrella policy. I choose a 1 mill umbrella that extends to my homeowners and my auto insurance. I mention bundle because you'll want to have the same insurer for your 3 policies. Keeps you out of a competing interest situation with you in the middle.

 

[atikovi]

The coverage you need is what you have in assets to lose.

Don't get that. If you have $100K in assets and $100K of insurance, they will just sue you for $200K so you could still lose it all. Actually they will probably sue for a million so you will be indebted for life even after losing everything.

 

[RhondaHonda]

But you can still get sued directly if the other party wants more money than what your insurance policy is able to provide, no?

Your insurance company will require a release from the suing party before paying from any of your liability coverage. The release is so you can’t be sued twice. You should carry a fair amount of coverage if you have some assets but as I said earlier, if you are at fault but not being extremely negligent (speeding 100+ in a school zone while drunk) the limits of your policy are what the other party wants. If you have a $10 million net worth and carry state minimums maybe they’d go after you personally but I never saw it happen. The vast majority of injury claims are soft tissue claims that attorneys want to get paid quickly and move on.

 

[supton]

Don't get that. If you have $100K in assets and $100K of insurance, they will just sue you for $200K so you could still lose it all. Actually they will probably sue for a million so you will be indebted for life even after losing everything.

Thing is, how would they know your net value? It's not like it's listed in the phone book.

 

[RhondaHonda]

Thing is, how would they know your net value? It's not like it's listed in the phone book.

They look at where you live, your occupation, etc. They can find out if you have a mortgage and how much it’s for. If you live in a crappy apartment and have pics on your social media of your job in fast food, they’ll happily take your policy limits. They won’t know what your actual net worth is but they’ll have a general idea of policy limits and assets.

 

[mattd]

I have a million dollar umbrella policy for liability.

 

[Kozman011]

I'm going to put this as nicely as I can. As a law enforcement officer with over 20 years, I can tell you that every swinging POS out their doesn't have any insurance, or a license for that matter. No one cares about you, the honest citizen trying to make their way through life. You need to buy as much as you can afford, then more! More often than not, you'll end up suing your own insurance company. These ******s keep driving even after being arrested numerous times. In the time we live in, officers have started to not stop these types of drives, so the numbers of these drivers will only increase, exponentially. Don't even get me started on the illegals here. We don't even bother arresting/citing them. Why, nothing even happens with them so why waste the time processing the paperwork. Buy ALL the uninsured motorist you can, and invest in a good quality dash cam. You've been warned Let me add, when you are at fault in an accident with one of these outstanding members of society, you best have a wall of insurance to protect you. There are lawyers who sole job is to enrich these dirtbags.

 

[The Critic]

Thing is, how would they know your net value? It's not like it's listed in the phone book.

There are industry tools available to perform an “assets search.”

 

[BISCUT]

Thing is, how would they know your net value? It's not like it's listed in the phone book.

Addin to what Critic stated. There is more than industry tools. There are companies out there that all they do is asset searches and tracking.

 

[BeerCan]

I am very overinsured and I like it that way. However, the more insurance you have the greater the chance you will get the better lawyers come after you. One of the first thing checked by lawyers is assets and insurance. If there is nothing to be had, the better lawyers will pass, a million dollar settlement means nothing if there is no way a person can pay for it. It's sad but true, I have seen it happen many times.