How Much Vehicle Liability Insurance Do You Carry?

[JewelFreak]

Wondering what other people do. Because juries sometimes award big bucks in case of a car accident if someone is hurt, I raised my car liability insurance to a million dollars. It added only about $30 to my premium. DH & I are having a disagreement about whether he should increase his -- he has only $300K. I think he's under-insured.

This concerns liability only, not collision insurance. What levels do you carry?

 

[Dancing Fire]

We used to carry $300k and when our daughter #1 (teenage driver then) got behind the wheel we then raised to $500k, b/c like you say JF the difference is minimum. Nowadays both of our daughters have their own 500k policies.

 

[movie zombie]

look at "umbrella" policies, DF.
better than raising limits on only one policy.
if in a car accident, the other person can and will look at all your assets, not just what your car insurance covers.

 

[Dancing Fire]

look at "umbrella" policies, DF.
better than raising limits on only one policy.
if in a car accident, the other person can and will look at all your assets, not just what your car insurance covers.

I think a $1million umbrella will cost $450 extra per year..

 

[missy]

look at "umbrella" policies, DF.
better than raising limits on only one policy.
if in a car accident, the other person can and will look at all your assets, not just what your car insurance covers.

We have an umbrella policy Laurie. I just don't know what amount the coverage is but it is for a high amount.

 

[movie zombie]

usually an umbrella also provides the attorneys to fight off the lawsuit.
and $450 is going to seem cheap in the event you ever had anyone go after you and anyone still covered on your insurance.

you should not only raise your car insurance then, you should also raise your home insurance. someone getting hurt at your home could cost you a bundle as well. your friend might not want to sue you but their medical insurer might.

 

[TooPatient]

I think we have 1 million for liability coverage on the car. We also have very high coverage for personal injury (and passenger injury) as well. My health insurance would not cover my medical expenses after a car accident even though I didn't have a policy that would cover my injuries (I was young and dumb and thought that is what my medical insurance did...).

We have substantially higher in other policies for exactly the reason you mentioned. This is one area where it doesn't seem worth it to skimp.

If a kid comes into your yard (even one you don't know while you are gone -- so trespassing) and gets hurt, you are liable. If a delivery guy falls on your front steps, you are liable. The list goes on

 

[makemepretty]

I live in Michigan where it's a no fault insurance state but for personal injury liability I have the min. required. The odds of you getting in an accident that you caused and killed or greatly injured someone is ridiculously small. Plus, you can't get blood from a turnip as the saying goes, we only own paid for older cars to begin with. If someone sued me for a million dollars, they'd never see it. Of all the people I know, I can't think of one person who ever killed or injured someone in an auto accident. I see it on the news but usually the person is doing something they shouldn't be(drinking, drugs, etc. while driving)

 

[Dancing Fire]

usually an umbrella also provides the attorneys to fight off the lawsuit.
and $450 is going to seem cheap in the event you ever had anyone go after you and anyone still covered on your insurance.

you should not only raise your car insurance then, you should also raise your home insurance. someone getting hurt at your home could cost you a bundle as well. your friend might not want to sue you but their medical insurer might.

The $450 quote was like 4 yrs ago I'm sure it is higher now.

 

[Calliecake]

We raised our car insurance years ago to a hIgh amount. The reason being if someone was serious injured even 500K will probably not go very far. We have a high umbrella policy as well.

 

[swingirl]

usually an umbrella also provides the attorneys to fight off the lawsuit.
and $450 is going to seem cheap in the event you ever had anyone go after you and anyone still covered on your insurance.

you should not only raise your car insurance then, you should also raise your home insurance. someone getting hurt at your home could cost you a bundle as well. your friend might not want to sue you but their medical insurer might.

The $450 quote was like 4 yrs ago I'm sure it is higher now.

Our umbrella policy for $1,000,000 is $363. Allstate. Bay Area. We have 4 drivers insured. Yours should be cheaper.

 

[movie zombie]

good to see i'm not alone in the umbrella policy camp!

 

[Dancing Fire]

usually an umbrella also provides the attorneys to fight off the lawsuit.
and $450 is going to seem cheap in the event you ever had anyone go after you and anyone still covered on your insurance.

you should not only raise your car insurance then, you should also raise your home insurance. someone getting hurt at your home could cost you a bundle as well. your friend might not want to sue you but their medical insurer might.

The $450 quote was like 4 yrs ago I'm sure it is higher now.

Our umbrella policy for $1,000,000 is $363. Allstate. Bay Area. We have 4 drivers insured. Yours should be cheaper.

That sounds too cheap. I'll check with AAA.

 

[Sky56]

I carry multiple millions of dollars liability on my vehicles but that is because I have the umbrella covering my rental properties too.
It's scary the idea of someone getting injured or killed on my properties or from my vehicles; my lawyer recommended a high figure for the umbrella. It gives me peace of mind and I pay about $400 extra a year on my insurance bill for it.

 

[JewelFreak]

When we lived in San Francisco I was on the jury for a car accident suit. The plaintiff - a passenger in one of the cars -- wanted compensation for "chronic knee pain" that made it impossible for her to continue working at a daycare. She had no case: wasn't wearing a seatbelt, was 5'2" & weighed 175 lbs so of course her knees hurt. During deliberations 2 people on the jury said, "Let's give her a nice lifetime income. The insurance will pay it." Everyone else refused to do that & she lost the suit.

Here's the thing: The jury was not informed whether the defendant had insurance, much less how much. We were told that's standard practice to make juries deliberate a case on its merits & not generously hand out insurance settlements. In fact, they had a couple hundred thousand coverage -- if we had given her a "nice lifetime income," insurance would only have covered up to its limit. The rest -- for the rest of the defendant's life -- would have come from his income & assets. Until the judgment is fulfilled, you are on the hook. You pay a percentage of your income -- some states, like Florida, exempt pensions & your residence from a judgment, but many do not.

We have an umbrella policy too for a million that costs $311/yr. Raising my car liability from 500K to a million added around $30 or $40 to the premium. Given the litigious society we live in, it seemed worth it. I wish I could persuade DH too, but he's a stubborn g&*)&)$m Dutchman & I'm still working on him. He drives an antique, once-wonderful, now falling-apart Austin model & it gives me the creeps. Living with an eternal 11-year-old is wearing! He tells me I'm overreacting -- glad to hear what you all have, thanks!

--- Laurie

 

[Karl_K]

I'm at 300k and it is under what I should have but its what I can afford right now.
I do strongly recommend a general liability rider, 1M is too low these days I think for rider.
I think 5mil is more like it, 10mil in the case of rental property.