My car insurance agent sent me a postcard and recommended uping the liability insurance on my two autos from $50K to $250K.
It will cost something like an extra $168 a year.
Necessary or are they just trying to squeeze some more dollars out of me?
What assets do you own that you might need to protect ? How much do you earn ?
And, OG forbid you actually hit someone and hurt them, how long do you think $50K will keep someone in a hospital ??
"Necessary or are they just trying to squeeze some more dollars out of me?"
Let’s see, typical commission on auto insurance is between 10-25%, so this effort is likely to net your agent an additional $17-42 annually. Given what an insurance guy makes in a year, I’m willing to bet his real motivation is to not have to explain to you why he allowed you to carry a policy with low limits without bringing it to your attention.
$50k can go quite a way as long as you don’t serious mess someone up. I just talked with a customer who got treated for a bloody brain (his head hit the driver’s side window) and his injury claim is going to be just under $50k. Someone ran a red light and t-boned him. Happens all the time. Ever run a red light or stop sign on accident? I have. Injuries from this very common occurrence range from on person having a stiff neck for a few days to multiple fatalities. And it’s an ACCIDENT so don’t play the, “But I’m a safe driver” card. There’s a first time for everything.
*Stepping down off the box *
Now. The right answer is to sit down with your agent. You seem to be sensitive to price, so take a look at what different liability coverages cost. The difference between 50/100 and 100/300 is huge compared to the difference between 100/300 and 250/500. You may find that, having made the jump to 100/300 that you’ll get considerably more bang for your buck by going an additional step up. And look at what your property damage coverage is while you’re there. That’s the last number of the ##/###/## format for liability. TONS of people are out there cruising around with $15k or $25k (or MUCH lower in Louisiana!) worth of coverage if they slam someone else’s car. Priced cars lately? $25k is the low end of average for a lot of what is out there, and you can get to $25k in damage FAST.
Know where the money comes from when you meet & beat your insurance limits?
Nothing personal, I assure you, but I couldn’t let this go.
Two years ago, I rear-ended a car at a stoplight when I turned my head to look at a street sign. I was fine and the driver of that car was fine but she happened to get pushed into an older woman in a sedan at a max of 5 miles an hour. This woman had been out on Workman’s comp since 1995 (and still is as far as I know). She had sued three people since for claimed back injuries and then I was trapped. I only had the liability minimums of $50,000 and she went for as much as she could and wanted more like $250,000. I was tied up with this for 2 years along with the insurance company. At three different points, it was about to go to jury trial and I was worried sick even though everone believed she was milking and faking. I finally got off about 4 moths ago through some sort of settlement and it was one of the best days of my life. On the strong advice of my lawyer, I raised my liability limit to the max and I have no qualms about paying it forever. Even minor claims can add up to big money.
About four years ago, I was hit from behind by another driver. She had the minimum coverage of only $25,000. My medical bills (thus far) have been about $30,000, and I pay about $1,500 a year out-of-pocket for medications alone.
I’m currently involved in a claim against my own insurance company on my underinsured diver coverage. (Yeah-- I actually have to sue my own insurance company to get coverage I paid for.) My attorney tells me not to anticipate it will be finished before next year.
The eldely lady who hit me was a sweet old thing, and it was just an accident. These things happen. But her actions have cost me five years of paperwork, and struggling to pay medical bills, not to mention the physical aspects. For that, I do blame her. It’s
$25,000 often isn’t enough to replace someone’s car, let alone cover their injuries or compensate them for living the rest of their lives in pain. It’s just not responsible to only carry the minimum.
A few years ago Mrs. Kunilou was run over by a teenager in a parking lot. Fortunately, it was a very low speed accident, and she was able to avoid being run over completely (she didn’t go under the wheel.)
Unfortunately, this minor accident screwed up her knee pretty badly.
Now she had no intention of suing, and she made that clear. It was, after all, an accident. However, after the doctor’s visits, the X-rays and CAT scans, and the physical rehabilitation for her knee (which never came back to 100% range of movement) the bills ran into thousands of dollars.
A little harder impact, or if she had taken the impact in her hip instead of her knee, the bill could have run into tens of thousands. If my wife had decided to sue, the medical bills and award for damages would probably have exceeded $50,000.
And, as I said, that was a minor mishap.
Thanks guys I think you convinced me.
I will call my agent and up it to $250k.