Understanding Car Insurance Limits? 100/300 or 250/500?

@Jcm91ca

I would recommend moving to an insurance company that has a much better understanding of both vintage, and exotic cars. Try Chubb.

State Farm and Geico, Allstate etc etc. are good for DD's, but every time I've compared rates for a Ferrari or like, it's been cheaper with a specialty company.

What they are proposing is ridiculous and sounds like a rip-off.

 

Is it necessary ...this really is an individual basis .. mainly based on income and assets

An umbrella is an inexpensive ways for that unforeseen accident that someone sues you fro millions or part of your salary for the rest of your life. At one point the umbrella will not be dollar for dollar of assets because leta say you have 5 million umbrella and you are worth 7mm .. you could be ok since the insurance company will work hard to defend the first 5 million .. in other words .. the best lawyers etc

Remember this is all about liability ..nothing to do with your car or damage to your car

Insure your car at agreed value so you get exactly what you know your car is worth if a total lost

Sent from my Moto G (4) using Tapatalk

 

Buy the highest limit liability policy possible. Then, buy an umbrella policy ... at least if you are living in California.

NorCal is very bicycle friendly. An auto-vs-bicycle accident can cause very serious injuries, and many bicycle riders are high income Silicon Valley techie types. This has the potential to translate to 6-digit damages in lost wage damages alone, not to mention damages for medical care and pain and suffering.

While you are at it, buy the same limits for under-insured motorist coverage, because there are many un-insured and under-insured motorists out there.

 

I would follow this advice in whatever state you live in. In Mass. the difference between 100/300 and 250/500 is nominal.

Decades ago I used to think well I only needed 25/50 because the worst I could do is total someone's $40K car. I know now that you can do much more property damage than just a car. The other day in this area a car crashed into a house and started the house on fire. The fire department didn't send the proper equipment initially because it was just reported to them as a car accident. The house (3 stories) almost burned down. I don't know what the damage amount is but it has to well into 6 figures.

Here is a partial report -

Police gave the following account: The preliminary investigation indicates that the BMW was traveling on Cambridge Street at a speed that was greater than reasonable and proper when it lost control and struck a wall near 145 Cambridge Street. The vehicle did not strike the building. As a result of the crash the BMW caught fire. The vehicle was close enough to the building where the flames were able to spread to one of the side walls. As a result the fire spread to the attic which eventually caused the roof to collapse. The occupants were able to evacuate the building and were not hurt. The driver was also unhurt.