Liability Coverage

Messages
1,459
Location
NY
What's everyone use for a guideline / logic when picking liability coverage? Granted I know this varies based on everyone's situation, location, risk adversion, etc. but just curious how everyone lands on numbers for coverage.
 
Messages
43,670
Location
'Stralia
Oz standard is $20M(Oz), $18.5 US. And we don't have any allowance (or ability to recieve) "pain and suffering"
 

JHZR2

Staff member
Messages
46,162
Location
New Jersey
Liability = you're protecting yourself from your own negligence or mistake. This plus PIP are the most important coverages. Some people think that because they don't owe much, that they shouldn't buy much coverage, and all is well because if they get sued they aren't much of a target. But if you cause damage to somebody, it is beyond rude and irresponsible to cover the damages you caused. There's a practical middle ground, a good deal higher than usual state minimums but probably lower than multi-million dollar coverage. What I don't understand is why insurance isn't maintained per driver, not per car. You are already insured by driving risk factors, but an insured can only operate one vehicle at a time.
 

Nick1994

$50 Site Donor
Messages
13,319
Location
Phoenix, AZ
My insurance liability limits, and most of my family members as well, are $100,000/$300,000 for bodily injury and $100,000 for property damage. Of course I have the same limits for uninsured and underinsured motorists as well. I can't believe the tons and tons of people who ride around with the state minimum here $15,000/$30,000 for bodily injury and $10,000 for property damage. Let's say for some reason my brakes fail, I ran a red light, and hit a newer BMW which is a pretty common car. If it were T-Boned at 40-45 mph I'm sure it would be totaled. How on earth could the state minimum $10k of property damage coverage cover that car? It could be a $60,000 car. My dad's a licensed insurance agent/adjuster, no way I'd be caught without proper insurance. That's like a firefighter's kid going around lighting stuff around town on fire.
 
Messages
2,466
Location
Pennsylvania
And I believe that you should take an umbrella liability policy over your house and car for $1,000,000. This costs between $100-$200 annually. Since lawsuits are often above the limits people carry on their car and homeowners insurance, a liability cap policy is an excelllent idea.
 
Messages
1,838
Location
Southeast Louisiana
I learned a whooole lot about this a couple years ago. I now carry 100/300 on both vehicles without question. An separate umbrella policy is something I am also looking in to.
 

99Saturn

Thread starter
Messages
1,459
Location
NY
For those of you carrying 100/300 why did you opt 100/300 over 250/500 (or another higher tier above 100/300)?
 

JHZR2

Staff member
Messages
46,162
Location
New Jersey
I opted for the highest plus umbrella. We earn enough, have enough, and most importantly, have enough work years ahead of us that long term garnishment would be a major issue.
 

Nick1994

$50 Site Donor
Messages
13,319
Location
Phoenix, AZ
Originally Posted By: 99Saturn
For those of you carrying 100/300 why did you opt 100/300 over 250/500 (or another higher tier above 100/300)?
I don't remember at the moment, but the price might have started to jump quite high at that point and 100/300 was a good meet in the middle spot.
 
Messages
1,520
Location
Dacono, CO
Originally Posted By: Nick1994
I can't believe the tons and tons of people who ride around with the state minimum here $15,000/$30,000 for bodily injury and $10,000 for property damage. Let's say for some reason my brakes fail, I ran a red light, and hit a newer BMW which is a pretty common car. If it were T-Boned at 40-45 mph I'm sure it would be totaled. How on earth could the state minimum $10k of property damage coverage cover that car? It could be a $60,000 car. My dad's a licensed insurance agent/adjuster, no way I'd be caught without proper insurance. That's like a firefighter's kid going around lighting stuff around town on fire.
And that right there is why I keep full coverage on all of our vehicles. Too many people are under-insured. If they hit you, and you don't have enough insurance to pick up were their insurance left off, then you're still in bad shape. They get to walk away, while you are left with next to nothing, and almost always through no fault of your own. BC.
 
Messages
3,258
Location
Indiana
Originally Posted By: JHZR2
Liability = What I don't understand is why insurance isn't maintained per driver, not per car. You are already insured by driving risk factors, but an insured can only operate one vehicle at a time.
yes... im with you on this. however i think the awnser is fairly simple, Money.
 
Messages
7,180
Location
CT
Carry enough to cover your assets and any damage you might do, state minimums are always very low, if you own a house I'd have at least $250k liability. For auto I have $1m all around. Cars are generally cheap, even if you whack a BMW that's $60k. But really hurt someone and get an ambulance chaser after you and you will spend that in legal costs alone.
 
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Messages
1,967
Location
Sudbury, ON, Canada
Originally Posted By: Bladecutter
Originally Posted By: Nick1994
I can't believe the tons and tons of people who ride around with the state minimum here $15,000/$30,000 for bodily injury and $10,000 for property damage. Let's say for some reason my brakes fail, I ran a red light, and hit a newer BMW which is a pretty common car. If it were T-Boned at 40-45 mph I'm sure it would be totaled. How on earth could the state minimum $10k of property damage coverage cover that car? It could be a $60,000 car. My dad's a licensed insurance agent/adjuster, no way I'd be caught without proper insurance. That's like a firefighter's kid going around lighting stuff around town on fire.
And that right there is why I keep full coverage on all of our vehicles. Too many people are under-insured. If they hit you, and you don't have enough insurance to pick up were their insurance left off, then you're still in bad shape. They get to walk away, while you are left with next to nothing, and almost always through no fault of your own. BC.
For all the stupidity we have up here with politicians, the one thing they did right is "no fault" insurance. My insurance picks up the tab to fix my car, their problem to chase who hit me. wink
 
Messages
23,912
Location
CA
Your auto is generally your largest liability, period. Most umbrellas require a certain limit on the underlying auto and homeowner/renter's policies. For instance, my workplace's $5M umbrella (minimum limit) requires at least $250k limits. So when considering an umbrella, also remember the additional cost of increasing the limits on your underlying policy.
 
Messages
437
Location
va
Originally Posted By: hattaresguy
Carry enough to cover your assets and any damage you might do, state minimums are always very low, if you own a house I'd have at least $250k liability. For auto I have $1m all around. Cars are generally cheap, even if you whack a BMW that's $60k. But really hurt someone and get an ambulance chaser after you and you will spend that in legal costs alone.
Yup, say you hit a neurosurgeon and they're unable to work for half a year. Not only is your liability insurance paying for their hospital stay/treatment, it's paying the income they would have made had they been able to work. Could easily be 300k for their income alone, excluding hospital bills. In this case the standard recommendation of 100/300 would fall way short of the needed amount. I think the more likely scenario is to cause damage/injury to multiple vehicles and occupants. Say you are responsible for a chain reaction collision... A minimum 1MM umbrella policy may not even come close to covering everything.
 
Messages
76
Location
Texas
Full coverage w/ minimum limits. If my insurance doesn't cover it all, they can sue but, they're not getting anything. Texas is a good state to get sued in, no garnishments.
 
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