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Old 05-20-2013, 11:54 AM
 
Location: Angier, NC
130 posts, read 464,726 times
Reputation: 75

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What do your auto insurance policy limits look like? Trying to determine what levels of coverage to get and whether or not it is worth it to pay more now just in case something does happen vs. have super low rates and limited coverage. Mainly looking at the following (although I know plenty of other variables affect your rates):

Bodily Injury
Property Damage
Medical Payments
Uninsured/etc.

Just want to see what everyone's thoughts were to see what I should look into.
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Old 05-20-2013, 01:37 PM
 
5,650 posts, read 9,960,333 times
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100/300/100 are generally enough to satisfy any claims unless you kill or permanently disable someone which is fortunately very rare. 50/100 will take care of 95% of all claims, but there is some risk. Anything lower and you are putting yourself at risk. If an accident is your fault and the other person breaks an arm or leg 25k is rarely going to cover it.
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Old 05-20-2013, 01:44 PM
 
Location: The Triad (NC)
31,516 posts, read 70,500,336 times
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Quote:
Originally Posted by Riley14 View Post
Just want to see what everyone's thoughts were to see what I should look into.
If you have real assets to protect do that with an umbrella policy.
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Old 05-20-2013, 02:27 PM
 
Location: Vallejo
16,414 posts, read 18,456,468 times
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500/1000/500

There's not much price jump. I dropped comp and collision and just carry high liability and uninsured/under-insured. Not so much worried about my car, which is only worth about $10-12k at this point, as about bodily injury. If somebody hits me and breaks my arm and I can't work for 9 months, well that's what I want insurance for. And likewise if I hit someone else and cause similar injury/lost income.
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Old 05-20-2013, 03:49 PM
 
5,650 posts, read 9,960,333 times
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Quote:
Originally Posted by Malloric View Post
500/1000/500

There's not much price jump. I dropped comp and collision and just carry high liability and uninsured/under-insured. Not so much worried about my car, which is only worth about $10-12k at this point, as about bodily injury. If somebody hits me and breaks my arm and I can't work for 9 months, well that's what I want insurance for. And likewise if I hit someone else and cause similar injury/lost income.
Sadly 80% of my clients would be in a mess if they had to replace their vehicle without an insurance payout if it happened to be totaled. Not to mention probably half of the cars are financed so they can't come off comp/collision.
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Old 05-21-2013, 04:46 AM
 
Location: The Triad (NC)
31,516 posts, read 70,500,336 times
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Originally Posted by Willy702 View Post
Sadly 80% of my clients would be in a mess if they had to replace their vehicle without an insurance payout...
Something less than half of that problem is about the cost to replace.
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Old 05-21-2013, 07:04 AM
 
11,256 posts, read 10,776,155 times
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Many people make the mistake of buying cheap insurance. A percentage pay a horrible price later for doing so. Cheap insurance is not worth it in the long run.

However, its important to grasp some key concepts:

1. Bodily Injury Liability Insurance protects third parties that you injure due to your carelessness or negligence. If you run a stop sign and badly injure a child in another car, your liability insurance is what will compensate that child. As part of your insurance contract, the insurance company is also obligated in this situation to hire a lawyer to defend you and attempt to settle the case within policy limits. If you fail to obtain high enough limits of liability coverage your potentially on the hook for a judgment that could be in the hundreds of thousands of dollars if you cause a serious injury or death. A judgment lasts for eight years where I live and can be renewed for another eight years. Don't make the mistake of thinking because you are broke now, you'll never have to pay.

I carry $1.1 million in liability limits.

2. Medical Payments or PIP coverage. This coverage pays YOU or an occupant in YOUR vehicle if you or the occupant are injured in an accident. If you have good health insurance, this coverage is not particularly necessary. If you don't have good health insurance than its critical you have it. I have good health insurance and carry the minimum amount my state will have of Med Pay/PIP coverage. Here, that is $3000. If I didn't have good health insurance, I'd obtain a $50,000 PIP.

3. Property Damage Liability Insurance. This coverage protects you if you cause an accident due to your carelessness and destroy or badly damage someone else's car. My state allows people to have this coverage in an amount as low as $15,000. This frightens me, because I just paid $30K for a brand new car. Many new cars costs more than $15K. You should have enough Property Damage Liability Insurance to be able to pay for the total loss of a new car. I have limits of 50K for property damage liability.

4. Uninsured Motorist and Underinsured Motorist. Are probably the two most neglected and two most critical types of automobile insurance coverage. This coverage protects YOU, YOUR FAMILY, AND FRIENDS riding in your car if you are struck by careless driver who either has no insurance or inadequate insurance to cover all the personal injuries that have resulted in an accident. I have seen many situations, where badly injured people are stuck with having to take low insurance policy limits the other driver had because they tried to skimp on money when it came to these coverages. What is more important? Is is more important to protect yourself and close family members with UM and UIM coverages or to protect someone you don't even know by having large amounts of liability insurance? I have limits of $1.1 million for uninsured motorist and underinsured motorist insurance. If I could give just one piece of advice to people, its find a way to have high limits of UM and UIM coverages.

5. Collision Coverage. Protects you if your car is damaged due to your own carelessness. You pick a deductible of $250, $500, or a $1000. Its an important coverage for all newer vehicles. I would suggest never having the $250 deductible. It adds unnecessary expense to your car insurance.

6. Comprehensive Insurance. Protects you if your car is damaged in a storm, a natural disaster, or was damaged because someone broke into it. Again, never have a deductible lower than $500.

Insurance always seems like a waste of money--until you need it. Than you always wish you had more. The economic difference between a policy of insurance with low coverages and one with good coverages is much less than you think it is. Price it out. Compare different companies. My advice is use the savings you get raising the deductible on your collision and comprehensive coverages to purchase higher limits of liability, uninsured, and underinsured coverages. Sometimes, a simple reallocation of your premium will get you better results.
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Old 05-25-2013, 07:06 AM
 
1,092 posts, read 3,133,755 times
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^^^I had family that worked for a national, premium insurance company, and the best advice I was given was to always carry Uninsured Motorist Coverage. It's very inexpensive and those that are reckless enough to have no insurance or to be uninsured often seem to be the scariest drivers! For that live in states with significant illegal immigrant populations it's especially important...
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Old 05-27-2013, 05:13 PM
 
12,803 posts, read 16,579,283 times
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I take high deductibles on collision and comprehensive. My way of gambling, and so far I am ahead. How many gamblers can say that?
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Old 05-28-2013, 09:00 PM
 
29 posts, read 51,813 times
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Quote:
Originally Posted by Litlove71 View Post
^^^I had family that worked for a national, premium insurance company, and the best advice I was given was to always carry Uninsured Motorist Coverage. It's very inexpensive and those that are reckless enough to have no insurance or to be uninsured often seem to be the scariest drivers! For that live in states with significant illegal immigrant populations it's especially important...
And don't forget under-insured motorist coverage as well. It is also very cheap.
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