How much Liability insurance is too much!

[markg91359]

Originally Posted by Radical_Car

I already said I had 500,000/1,000,000/500,000 liability and equal 500k/1000k UIM and UM

I'm glad you do, but everyone doesn't. Your comment was: UIM and UM wouldn't be needed if everyone had adequate liability insurance. I applaud you personally getting good insurance. Most people sadly do not.

[howard555]

Originally Posted by Radical_Car

If everyone had ample liability coverage, there'd be no need for UM and UIM

Is it true that Under Insured only helps you in an accident that is someone else's fault. And your UI won't pay you anything until the insurance company has offered the policy limits of their at fault driver?
If true then a settlement offer below their driver's policy limits is all you are entitled to unless you go to trial and the court verdict is higher than the policy limits.

[notnamed]

You reach a point where it is cheaper to get an umbrella policy. A 250k auto policy with a $1million umbrella may be cheaper than 500k/1m auto policy but you'd have to get a quote to see.

[emm74]

Originally Posted by notnamed

You reach a point where it is cheaper to get an umbrella policy. A 250k auto policy with a $1million umbrella may be cheaper than 500k/1m auto policy but you'd have to get a quote to see.

Umbrella policies typically do not cover UM and UIM claims, just liability claims against you, and UM coverage seems to be the OP's primary focus.

If the price difference between 250/500 and 500/1M isn't that much, I guess it's worth it to have the increased limits for UM for your own protection. But generally speaking, you should be looking at your assets and having enough coverage to protect those.

I can tell you that (based on 20 years of practicing insurance defense and coverage law), it's very rare for someone to try to go after an insured personally, even for a catastrophic accident, if they have 100/300 or above. But of course if you have more assets, you'd want more coverage just to be sure.