Is this too little car insurance protection?

[Anonymous]

I looked over my car insurance for the first time and was wondering if it was too low:

Bodily injury: 30k per person / 60k per incidence
Property damage: 25k
uninsured: 30k/60k

I have an old toyota so won't be too much to replace. Coverage is 80/month.

I always see people talk about the cost of their coverage but never breakout what the coverage entails. Am I being too risky?

[Anonymous]

Anonymous wrote:I looked over my car insurance for the first time and was wondering if it was too low:

Bodily injury: 30k per person / 60k per incidence
Property damage: 25k
uninsured: 30k/60k

I have an old toyota so won't be too much to replace. Coverage is 80/month.

I always see people talk about the cost of their coverage but never breakout what the coverage entails. Am I being too risky?

If someone t-bones you and you end up with a long hospital and rehab stay with months off work, is 30k enough money for you? Certainly not enough for me, so I have many multiples of that.

[Anonymous]

Where are you located? The minimum coverage in VA goes up to $50,000 next year.

It is definitely too low. Imagine you’re hit by a driver with your coverage and that driver causes you to break a leg, need a surgery, be unable to work, or worse, and have serious lifelong injuries. You could quickly accumulate far more in injuries than the $30,000 you’re insured for in UIM/UM coverage. Is that a risk you’re willing to take? When you buy insurance, you have to think about more than the cost of your car. Think about what money you want available to you if you suffer really bad injuries in a crash, or if your mistake causes them for someone else. Do you own a home? Do you have an umbrella policy? Even for a young, healthy person, $30,000 in coverage is way too low. What if you’re hit by a car crossing the street in DC and lose a leg? Those are the questions you need to ask.

[Anonymous]

OP here,

Live in VA. I think those are good points.
Would the following be a more reasonable amount? Is there a recommended base?
100k/person 300/ accident for bodily injury and uninsured
property damage: 250k

I have no umbrella plan. Just got off of my family insurance and they just keep the bare bones so they aren't good resources.

[Anonymous]

This is what we have:
Bodily Injury Liability: $300K/$500K
Property Damage Liability: $100K
Uninsured Motorists Bodily Injury: $300K/$500K
Property Damage: $100K

The goal is to have enough insurance that, in case of a bad accident, you don't have to worry about the money. You don't need that stress on top of your injuries.

[Anonymous]

Do you have assets? If not, then you're probably fine. If you are at fault and injured, you presumable have health insurance. If you have assets and are at fault and get sued then you will no longer have assets.

[Anonymous]

Don’t forget underinsured too. If get more than what you have now overall.

[Anonymous]

Anonymous wrote:This is what we have:
Bodily Injury Liability: $300K/$500K
Property Damage Liability: $100K
Uninsured Motorists Bodily Injury: $300K/$500K
Property Damage: $100K

The goal is to have enough insurance that, in case of a bad accident, you don't have to worry about the money. You don't need that stress on top of your injuries.

This is what I have but I think you have to have this minimum for an umbrella policy

[Anonymous]

Anonymous wrote:

Anonymous wrote:This is what we have:
Bodily Injury Liability: $300K/$500K
Property Damage Liability: $100K
Uninsured Motorists Bodily Injury: $300K/$500K
Property Damage: $100K

The goal is to have enough insurance that, in case of a bad accident, you don't have to worry about the money. You don't need that stress on top of your injuries.

This is what I have but I think you have to have this minimum for an umbrella policy

NP. We have this too. Is it better to increase this or to get an umbrella policy?

[Anonymous]

As someone who was hit by a car who was underinsured, yes, that is way too low. Medical issues from being hit by a car can linger long past leaving the hospital.. years.

[Anonymous]

Anonymous wrote:Do you have assets? If not, then you're probably fine. If you are at fault and injured, you presumable have health insurance. If you have assets and are at fault and get sued then you will no longer have assets.

This is terrible advice, and borderline idiotic. Health insurance doesn't cover lost work. It doesn't cover pain and suffering. Don't listen to this moron.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This is what we have:
Bodily Injury Liability: $300K/$500K
Property Damage Liability: $100K
Uninsured Motorists Bodily Injury: $300K/$500K
Property Damage: $100K

The goal is to have enough insurance that, in case of a bad accident, you don't have to worry about the money. You don't need that stress on top of your injuries.

This is what I have but I think you have to have this minimum for an umbrella policy

NP. We have this too. Is it better to increase this or to get an umbrella policy?

Umbrella insurance is cheap because they don’t cover the first few hundred thousand so if you got just umbrella you’d have a gap where your initial insurance stopped but before the umbrella insurance picked up.

[Anonymous]

Anonymous wrote:This is what we have:
Bodily Injury Liability: $300K/$500K
Property Damage Liability: $100K
Uninsured Motorists Bodily Injury: $300K/$500K
Property Damage: $100K

The goal is to have enough insurance that, in case of a bad accident, you don't have to worry about the money. You don't need that stress on top of your injuries.

Why don't you decrease the $500K down to $300k and just cover the overlap with umbrella?

[Anonymous]

Anonymous wrote:

Anonymous wrote:This is what we have:
Bodily Injury Liability: $300K/$500K
Property Damage Liability: $100K
Uninsured Motorists Bodily Injury: $300K/$500K
Property Damage: $100K

The goal is to have enough insurance that, in case of a bad accident, you don't have to worry about the money. You don't need that stress on top of your injuries.

Why don't you decrease the $500K down to $300k and just cover the overlap with umbrella?

That’s what we do

[Anonymous]

I have basically the max on every category in this because the marginal cost of going up from lower levels is relatively low (maybe a few hundred dollars a year, total) and the downside risk of being under-insured would be quite high, even if I don't think it's likely I'll hit anyone with my car.

Is it the right financial decision, strictly speaking? Maybe not. But I'd rather pay a little more not to have to worry about it.