Insurance Coverage Limits?

[benjamming]

What are the recommended coverage limits for automotive insurance? The vehicles aren't used for commercial purposes just personal use. These are probably bare minimums required by the state of Alabama. My existing coverage is:

Liability

Bodily injury
Each person $50,000
Each Accident $100,000

Property Damage
Each Accident $50,000

Medical Payments
Each Person $5,000

Uninsured/Underinsured Motorist

Bodily Injury
Each Person $25,000
Each Accident $50,000

We have a house & 2 vehicles (which are in my signature). These coverage limits are from when I was in college & owned a '93 Lebaron (no, not Jon Voight's car - no 'h'

). The rest of my personal belongings varied day-to-day depending upon how much food was in the fridge. The recent accident I was involved in made me review this since I have probably NEVER reviewed it. I hate the thought of insurance but to ignore the issue doesn't solve it, that's for sure.

I have some ideas on what these should be, but I want more than my ignorant mind at work here.

Thank you.

 

[John_K]

Those all seem a little low. When I upped mine a few years ago I was surprised at how little my premium went up. I guess it's because the likelihood of paying out doesn't change much, i.e., lower amounts are more likely. But it's good to have.

John

 

[Gary Allan]

I've always carried he max limits on everything. Never took advantage of limited tort ..etc. My premiums appear to be going down annually. Probably due to competition for new customers.

 

[BigCahuna]

Looks like you have bare minimum coverage. The one thing you don't want to do is have an accident with someone who only has the bare minimum.

 

[Boomer]

Use limited tort if available...big savings. Go to a minimum of $100-300,000 liability and property damage of $100,000..hit a big Mercedes and you'll need it. If you can afford a $500 or $1000 deductible, do it. That is where the real savings are. I insure two vehicles at these limits and with $1000 deductible for about $850/year. I also use limited tort here in PA.

Also consider a liability umbrella that goes over the house and car. For $1,000,000 coverage, expect to pay about $125/year. Helps me sleep better at night.

 

[benjamming]

I don't have the following coverages on auto:
Loss of income
Death/dismemberment
Loss of use

House coverage is Form H05 (Alfa).
Personal property $273,600
Loss of use $117,200
Personal Liability $300,000
Medical each person $5,000
Medical each accident $25,000

 

[Gary Allan]

Originally Posted By: Boomer


Also consider a liability umbrella that goes over the house and car. For $1,000,000 coverage, expect to pay about $125/year. Helps me sleep better at night.


I too have the $1M umbrella.

 

[willix]

I have a large deductible $1000. I wish it wasn't that high but I can squeak by under $1000 a year and have very good coverages. The $1000 deduction is only if you get in a wreck. Glass is free, tow, rental, fire & theft is no deduct. The coverages are about 3x better than the minimums. Allstate has been good many years.

 

[JustinH]

The savings are in the deductible.

I carry full coverage on a car that is worth about 4 grand. I carry a $1000 deductible on the car.

Those numbers in the first post are not the minimum in New York. I have similar coverage with geico, and it is the "medium" coverage.

Increasing the bodily injury, property damage, and medical payments is very cheap. I was surprised how cheap that portion of the insurance is. The bulk of the premium is in collision and comp.

I also added roadside assistance, I think it is $7 for a 6 month policy. It is nowhere near as good as AAA, but it will take me to the nearest reputable service station if I need a tow.

Insuring an Ion sedan runs me $260 for 6 months.

 

[tonycarguy]

How much you should have for uninsured/underinsured depends on the laws in your state. In Calif, if you have collision insurance you don't need uninsured PD (it's redundant).

I don't have umbrella coverage because it's a waste of money unless your home has firearms or vicious dogs. Property insurance covers $100k already. I think the media exaggerates civil verdicts to the point the average person is paranoid about these million dollar claims, which are so rare you probably have a greater chance of being hit by lightning.

 

[Gary Allan]

It depends on your exposure. Multiple children driving your vehicles and having one of them involved in a mega accident where all coverages exceed all available insurances ..the natural action is to go where ANY money is.

 

[JHZR2]

Those seem low. I have $1MM/$1MM coverage, it's worth it, as insurance really should protect you from the big stuff, not leave you hanging.

That said, when I was hit by a marginally insured driver, their insurance company DID go to court for them to prevent any suit or judgement above what their insurance could pay, and seemed willing to do that to the bitter end. Id imagine with any higher-costing level of protection they would do that or better...

 

[bepperb]

50/100 is pretty low. I doubt it would cost much more to have 100/300.

My sister was in an accident, four ambulances and a helicopter. I think all said and done it was in the 500,000 range. The odds of causing that are slim, but it happens and it wasn't that hard. In her case, a guy pulled a u turn on the gravel part of the freeway and didn't see them. One bad decision, decades of wage garnishment.

 

[PandaBear]

Depends on how much asset you have, that may be sufficient in deterring the ambulance chasing lawyer from causing a lot of additional damage. If you don't feel comfortable, raise it to 100k/300k for injury.

 

[Stewart Fan]

Unless you're not able to feed your family every day or on the verge of losing your home where every penny counts,there is no logical reason not to have more than the minimum.

The difference for me to have 50/100 (state minimum) and 1,000,000/1,000,000 is less than $20 per month.

Having a lot of insurance really is pretty cheap.

 

[The_Jeff]

Your insurer would like you to please not mention your limits if you get in a wreck. Could cause a salivating lawyer to go after you if you have a huge limit.

You'll note your insurance card simply states "meets minimum levels required by law".

 

[benjamming]

@Gary,

We have no kids.

@tonycarguy,

I can't even get property damage as uninsured motorist since it's double-dip.

@eljefino,

Yeah.

Now for some pricing based on 6 months. These prices are based upon combo discount, multi car discount, length of service discount, airbag discount (Honda), anti-theft device discount (Honda), airbag discount(Pontiac), & automatic seat belt discount (Pontiac - which it doesn't have & the local office can't remove).

'02 Accord
$50k/$100k/$100k for Bodily Injury/Property Damage is $107.05 vs. $96.81 or $10.24 less for $100k/$300k/$100k.

'94 Grand Am
$50k/$100k/$100k for Bodily Injury/Property Damage is $97.32 vs. $111.24 or $13.92 more for $100k/$300k/$100k.

'02 Accord
$5k for Medical Payments is $9.92

'94 Grand Am
$5k for Medical Payments is $7.41.

'02 Accord
Comprehensive with no deductible is $61.48 vs $30.64 for $500 deductible.
Collision with $250 deductible is $132.58 vs $118.24 for $500 deductible.

'94 Grand Am
Comprehensive with no deductible is $45.35 vs $22.59 for $500 deductible.

'02 Accord & '94 Grand Am are same here:
Uninsured/Underinsured Motorist $25k/$50k for Bodily Injury is $30.95 vs $39.68 or $8.73 more for $50k/$100k.

I think that $100k/$300k/$100k is about right for now - at least much better than before. I don't see any reason to go any higher with Liability - Medical Ppayments as these are stackable & is only used for what health insurance (BCBS) doesn't pay. Is there any reason why Uninsured/Underinsured Motorist - Bodily Injury shouldn't be the same as Liability - Bodily Injury?

Should I consider Loss of Income and/or Loss of Use? If so, why & what limits especially loss of use Daily Limit & Maximum Limit?

Alfa doesn't offer new car replacement coverage as Win said he had in my other "insurance" thread.

House insurance is $1021 every 6 months. I can't get a better policy with Alfa as H05 is supposedly the best one.

 

[The_Jeff]

Originally Posted By: benjamming

'02 Accord
$50k/$100k/$100k for Bodily Injury/Property Damage is $107.05 vs. $96.81 or $10.24 less for $100k/$300k/$100k.

The actuaries decided those who go for better than minimum coverage cost less, even with higher caps, than the dregs who get state minimum legal.

 

[mrsilv04]

For the first week after my accident, it was in question if the guy who hit me was covered by the insurer of the vehicle he was driving.

Let me tell you, I was glad that I had the coverage that I did at that point.... and I have more coverage than you do.

 

[Shannow]

Down here, the typical Motor Vehicle policy carries $7M of third party stuff, and the home $20M, in addition to the total loss values insured against.