Car Insurance Question

[Rob Hanesworth]

My insurance agent has "reviewed" my car insurance (translation: looked for excuses to charge me more). Currently, I have Automobile Liability Insurance of:
*Bodily Injury $50,000 each person, $100,000 each occurence
*Property Damage $50,000 each occurence

I have had those limits a long time. The agent thinks I need to raise the bodily injury limits to $100,000/300,000. The agent's rationale is that if I am found negligent in an accident and someone has serious injuries requiring long term care I could lose all my assets (lose my ass) including house, savings, dog, etc.

A. I am not sure that raising my per person limit from $50K to $100K would save my ass if I injure someone and they wind up with $500K+ in medical bills.
B. I am 67 years old and have not yet been liable in a significant car accident. (Nothing beyond a fender bender.)

What kind of liability limits do you people carry? Car insurance is a little like going to the casino. When you place your bet on it you think you will win(?) (have an accident) and the house is betting you won't.

I know I need insurance, but it pisses me off how fast the cost goes up. On the homeowners side, the insurance company raises it every year because the "cost to rebuild" my home has gone up, even though I could buy the equivalent house that is for sale down the street for 75% of what they say my rebuild would cost. And, my policy also covers, and charges for, my outbuildings at a value of 10% of the house value, even though I have no outbuildings. This is required by the state insurance regulating agency (staffed, no doubt, with insurance industry refugees).

What a racket!

Oh, and dammit, snowflakes are falling.

[fauxmaha]

You should look into an umbrella policy.

[Cosmic Wonder]

What Jeff said. We have some kind of umbrella policy for three million, it's like a extra 150.00 a year. But I think or automobile limits are higher than yours.
Yeah, it's a racket, but if you ever need it... And it doesn't matter what your personal driving history is, as you age, stuff happens. If you take out a high income wage earner, or a family, you could be on them hook for a lot.

Mike

[fauxmaha]

That's the thing right there. The numbers I've seen are pretty compelling: Its way, way cheaper to get coverage against a disastrous, multi-million dollar claim through an umbrella policy than it is to get the same coverage limits on your auto or homeowners policies.

[Hobson]

I was gonna say umbrella policy. I still will. Our agent says that the umbrella ought to be as much as all of your assets. But I think it only comes in million dollar increments. Pretty sure you have to have your auto and homeowners with the same company to buy an umbrella.

[Doug]

Thing I just found out.  It cost me less than half as much to insure collectible car as a 2007 car and that's for better coverage.  So the solution for cars is to only drive cars that are 40-50 yrs old.    Save money and it's cool. 

[Rob Hanesworth]

Thanks, all. I added an umbrella, though my assets probably needed only a small parasol, similar to what comes in a mai tai.

[Deleted]

My assets would be covered by one of those little umbrellas they stick in drinks....

[Bassman]

It sure is a racket, Im shopping around because State Farm keeps raising my rates every year, and I've never had an accident or made a claim. I think they punish their loyal customers.

[Marshall]

Nov 13, 2014 10:42:54 GMT -5 fauxmaha said:

You should look into an umbrella policy.

That won't work very well for the snow.