Hi,
I was shopping around for insurance, and wondering whether I'm carrying too much, or too little.
I'm insuring a 2016 VW GTI, driven about 11-12k miles a year. There is one extra driver on the policy, my wife. I live on the west side of Los Angeles, California. No accidents/no tickets/no DUIs.
My net worth is about $1.4 million.
My current coverage:
- Bodily Injury & Property Damage Liability
- Coverage: $250,000 each person,$500,000 each accident,$100,000 each accident
- Cost: $404.00
- Uninsured/Underinsured Motorist
- Coverage: $250,000 each person,$500,000 each accident
- Cost: $81.00
- Medical Payments
- Coverage: $5,000 each person
- Cost: $12.00
- Uninsured Motorist Property Damage
- Coverage: No Coverage
- Cost: $0.00
- Comprehensive
- Coverage: $500 deductible
- Cost: $66.00
- Collision
- Coverage: $500 deductible
- Cost: $521.00
- Uninsured Motorist Collision Deductible Waiver
- Coverage: No Coverage
- Cost: $0.00
- Rental Reimbursement
- Coverage: No Coverage
- Cost: $0.00
- Roadside Assistance
- Coverage: No Coverage
- Cost: $0.00
- Custom Parts and/or Equipment value
- Coverage: No Coverage
- Cost: $0.00
-
Loan/Lease Payoff
- Coverage: No Coverage
- Cost: $0.00
-
Total vehicle Premium $1,084.00 ($2,168 yearly)
I'd appreciate any opinions about whether this is enough, too little, or too much.
How much car insurance should I be carrying? Does more net worth mean more insurance?
byu/Dogsbottombottom inInsurance
Posted by Dogsbottombottom
6 Comments
You should have higher limits on Uninsured/Under Insured many people in California don’t have insurance or have State Minimum of $5,000.
I bought a $5M umbrella policy because $250K or even $500K isn’t enough to protect your assets if you’re found at fault in an accident which kills or disables someone, and my insurance company wouldn’t go up to $10M in the state of California.
I also opted for the $1M in uninsured/underinsured motorist coverage option for $168 a year. If I’m ever killed or disabled an extra $1M will help noting employer provided disability insurance has a limit on same occupation coverage and that’s less expensive than even AD&D coverage.
Get the uninsured motorist property damage.
If your net worth is 1.4 million, in the event of a serious accident, there is the chance that they will come after everything even exceeding your policy limits. If you have it, they’ll know, they’ll come for it.
Get a 1 million dollar umbrella, they are cheap and absolutely worth it. The more you have, the more you have to lose.
get a 1M umbrella and your good to go. 1M umbrella should only cost like $200-300
Get an umbrella policy for at least 1 or 2 million in liability coverage. If it’s available, look into umbrella uninsured motorist (injury) coverage as well. If you own a house or have any other liability policies (RV, motorcycle, boat, etc), you may have to have a certain level of underlying liability coverage on those as well. My $1M umbrella is about $300 per year but I did have to increase the liability insurance on my home owners so that increased slightly.
Also as you have assets you can probably increase your comp and collision deductibles and you should be ok without uninsured motorist property damage.
Do you have rental and roadside elsewhere? I feel like this portion is always the cheapest part of car insurance, my insurance pays $55 a day for a rental. I realize you can probably pay for a rental easily enough, but I also know to keep money you need to be stingy about money and this always seems like a great value play added onto insurance.
Roadside is easily covered elsewhere thru like aaa tho