T E asked:
My insurance has strongly recommend that I should increase my automile liability insurance from $1 million to $2 million, although I have not involved in any accidents.
My insurance has strongly recommend that I should increase my automile liability insurance from $1 million to $2 million, although I have not involved in any accidents.
I wonder if that is because of the possible increase of accident compensation these days. Do you think that the increase of liability insurance is necessary?
If you want $1 million coverage, you might consider a personal umbrella policy, which overlies both your auto and personal liability coverages. When I sold some of them in the 70s and 80s, the cost was less than $500 a year, and they cover some possible claims that the underlying policies don’t, as I recall. Ask about one.
I carry $300,000 plus an umbrella policy (as recommended above) to $1 million. I think this is probably sufficient.
when you purchase insurance you are buying protection for your assets, your net worth, the value of your property and earning potential
so if you are a recent grad with an apartment and car just starting out you might not need as much coverage as a settled person who is well established in their job, owns a home, has a family. etc. (it’s based on what you are worth) and yes, accident compensation is higher these days
especially since everyone is sue happy