Car Insurance Question

[2mickeys1minnie]

I know different states have different requirements but I'm curious what everyone has for liability on their car insurance. I live in NY. I have 100k/300k. I was speaking with a friend who said I really need to up it to 250/500k since I own a home. I really don't think I can afford to do that as I just added my 18 year old son to my car insurance and it already skyrocketed. I'm worried now that I am under insured. I'd appreciate any advice. Thoughts?

 

[Sadie22]

Some people carry liability umbrella policies.

 

[2mickeys1minnie]

Some people carry liability umbrella policies.

Here you cannot get an umbrella policy without the 250/500k minimum.

 

[supersnoop]

Insurance is supposed to protect your assets. How much do you have that you need to protect?

It's also a bad idea to disclose how much insurance you have. You're telling people how much they can sue you for without you caring.

 

[scrapquitler]

I know different states have different requirements but I'm curious what everyone has for liability on their car insurance. I live in NY. I have 100k/300k. I was speaking with a friend who said I really need to up it to 250/500k since I own a home. I really don't think I can afford to do that as I just added my 18 year old son to my car insurance and it already skyrocketed. I'm worried now that I am under insured. I'd appreciate any advice. Thoughts?

We have the $250K/$500K and we have a million dollar umbrella policy on top of that.

 

[AnnaS]

Here you cannot get an umbrella policy without the 250/500k minimum.

Same thing here in NY.

 

[AnnaS]

I know different states have different requirements but I'm curious what everyone has for liability on their car insurance. I live in NY. I have 100k/300k. I was speaking with a friend who said I really need to up it to 250/500k since I own a home. I really don't think I can afford to do that as I just added my 18 year old son to my car insurance and it already skyrocketed. I'm worried now that I am under insured. I'd appreciate any advice. Thoughts?

I would definitely go to 250/500. I won't even tell you what I paid for a few years - years ago when I had two sons under 25.

 

[AnnaS]

Insurance is supposed to protect your assets. How much do you have that you need to protect?

It's also a bad idea to disclose how much insurance you have. You're telling people how much they can sue you for without you caring.

You are right. I don't know about here - but I try not to tell people outside of my family what coverage I have.

I tried to do the multi-quote - but I still can't figure it out

 

[cvjw]

Just be aware that an accident can happen very, very quickly where severe injuries can occur. Injuries that require intensive, very expensive stays in the hospital. The injured person will come after your insurance first, but if there isn't enough to cover their medical bills, they will come after you.

OP, we had this happen with our teenage son. A motorcyclist hit him, had to be rushed to the hospital, where he stayed in intensive care for weeks. He ended up with hundreds of thousands in medical bills. Even though he was at fault for the accident, he tried to have liability changed to my son so he could sue State Farm and then us.

it was an absolute nightmare. We found out the hard way that State Farm would only cover a portion of his medical bills, and then we were open to be sued for the remainder. We had to fight him for 2 years to keep him at fault for the accident that he caused

If you have assets, you need to be fully insured. There are people out there that would take everything you have, even if they aren't entitled to it.

 

[2mickeys1minnie]

Just be aware that an accident can happen very, very quickly where severe injuries can occur. Injuries that require intensive, very expensive stays in the hospital. The injured person will come after your insurance first, but if there isn't enough to cover their medical bills, they will come after you.

OP, we had this happen with our teenage son. A motorcyclist hit him, had to be rushed to the hospital, where he stayed in intensive care for weeks. He ended up with hundreds of thousands in medical bills. Even though he was at fault for the accident, he tried to have liability changed to my son so he could sue State Farm and then us.

it was an absolute nightmare. We found out the hard way that State Farm would only cover a portion of his medical bills, and then we were open to be sued for the remainder. We had to fight him for 2 years to keep him at fault for the accident that he caused

If you have assets, you need to be fully insured. There are people out there that would take everything you have, even if they aren't entitled to it.

Wow. I'm so sorry that happened to you and your son. That is a real eye opener for me. Thank you. I will up definitely up my coverage. You just never know. Now you guys have me worried about my homeowners policy lol

 

[2mickeys1minnie]

!!!

I would definitely go to 250/500. I won't even tell you what I paid for a few years - years ago when I had two sons under 25.

Oh no. I'm scared! I have 2 teenage boys. Ahhhhhhhh!

 

[2mickeys1minnie]

Insurance is supposed to protect your assets. How much do you have that you need to protect?

It's also a bad idea to disclose how much insurance you have. You're telling people how much they can sue you for without you caring.

Understood. But I think here its ok. No one knows who I am.

 

[mrsstats]

I work in insurance in NY. We write 99% of our policies with single limit liability of $500,000. I would also suggest 1 million dollar umbrella. The Umbrella policy is relatively inexpensive for the coverage you get. You did not mention what state you live in and if it is a no fault state. In a no fault state, if you are injured in an accident your medical bills are paid by your own insurance company. The liability that you carry comes in to play when there is a "serious" injury.

Contact your company, I don't think the increase in liability would be that much.

 

[2mickeys1minnie]

I work in insurance in NY. We write 99% of our policies with single limit liability of $500,000. I would also suggest 1 million dollar umbrella. The Umbrella policy is relatively inexpensive for the coverage you get. You did not mention what state you live in and if it is a no fault state. In a no fault state, if you are injured in an accident your medical bills are paid by your own insurance company. The liability that you carry comes in to play when there is a "serious" injury.

Contact your company, I don't think the increase in liability would be that much.

Thanks! I am in NY as well. I appreciate the advise.

 

[tvguy]

We have the $250K/$500K and we have a million dollar umbrella policy on top of that.

Same here. The attorney who did our estate planning call THAT the bare minimum insurance you should carry.

 

[MillauFr]

I think it is very risky way to save money by signing up for a bare bones insurance plan with low liability limits. It is much safer to buy a plan with higher deductibles that has at least $500k liability.

 

[here757]

That attorney should have advised u to carry insurance to cover ur assets. If ur worth is 500,000.. Don't buy policy for 1million. If u hit joe. Joes attorney sees ur 5 million dollar home. Of course his lawsuit against u is higher then Susie. Sorry but it's the truth. Anyone can sue for any reason. Any time for any amount of $$. Do they always win.. No but doesn't stop them.
I'm an ex insurance agent.. My advise if u don't trust insurance company.. Talk to a financial advisor.
Side note.. Umbrella policy start coverage at 1 million. So if u carry 300/500 ... And it's single person accident ur auto will pay 300,000 and u have to pay difference then umbrella will start paying at a million. I have a gap.. Might wanna call ur agent

 

[Gracie09]

That attorney should have advised u to carry insurance to cover ur assets. If ur worth is 500,000.. Don't buy policy for 1million. If u hit joe. Joes attorney sees ur 5 million dollar home. Of course his lawsuit against u is higher then Susie. Sorry but it's the truth. Anyone can sue for any reason. Any time for any amount of $$. Do they always win.. No but doesn't stop them.
I'm an ex insurance agent.. My advise if u don't trust insurance company.. Talk to a financial advisor.
Side note.. Umbrella policy start coverage at 1 million. So if u carry 300/500 ... And it's single person accident ur auto will pay 300,000 and u have to pay difference then umbrella will start paying at a million. I have a gap.. Might wanna call ur agent

Um a million dollar umbrella policy doesn't start at a million dollars it covers upto a million dollars. So the 700,000 difference in you example would be covered. I have to wonder how many people you misadvised while you were an insurance agent

 

[MillauFr]

Um a million dollar umbrella policy doesn't start at a million dollars it covers upto a million dollars. So the 700,000 difference in you example would be covered. I have to wonder how many people you misadvised while you were an insurance agent

That is my understanding as well.

 

[starry_solo]

Um a million dollar umbrella policy doesn't start at a million dollars it covers upto a million dollars. So the 700,000 difference in you example would be covered. I have to wonder how many people you misadvised while you were an insurance agent

That is my understanding as well.

Mine too.