Recommended Auto Insurance Liability Limits

[giantsfan]

I found out that I can raise my auto policy liability limits to one or two million from the 500k that I currently have (and raise the uninsured limits to the same or smaller amounts). I can envision a far fetched scenario where I could incur $1 million dollars liability in an auto accident. I'm having a tough time coming up with one in which $2 million liability for an accident is even possible so should I consider liability insurance that high? Note that the policy is a single limit for all bodily injury and property damage rather than the more common split limits found on auto insurance policies.

I also need to pick a number for this un/underinsured motorist coverage. I have good medical insurance and I am semi-retired so probably could not get any award for lost wages. So I was wondering what a realistic upper limit for pain and suffering would be for a single person who was seriously injured. Are awards as high as 300k, 500k, or more even possible? If not, I'd say there's no point in getting insurance coverage that high even if the cost is minimal.

Note that this is in the San Francisco Bay Area. Thanks.

 

[Betty3]

You might want to talk to a car ins. agt./broker. That person can probably help you better than us setting up a policy for your specific needs.

 

[giantsfan]

The only issue is that the agent probably has limited, if any, knowledge of what types of awards are being given for liability or pain and suffering. I'm hoping that there are lawyers or others here who have recent experience based on actual settlements or trials and can give a ballpark number for realistic highest awards.

 

[Betty3]

We do have a few lawyers on the forum - most are lay people with knowledge/expertise in certain subjects. You can see if someone comes along & gives you some additional information. If not, you can get a lawyer & ask though we do not give referrals.

 

[army judge]

I found out that I can raise my auto policy liability limits to one or two million from the 500k that I currently have (and raise the uninsured limits to the same or smaller amounts). I can envision a far fetched scenario where I could incur $1 million dollars liability in an auto accident. I'm having a tough time coming up with one in which $2 million liability for an accident is even possible so should I consider liability insurance that high? Note that the policy is a single limit for all bodily injury and property damage rather than the more common split limits found on auto insurance policies.

I also need to pick a number for this un/underinsured motorist coverage. I have good medical insurance and I am semi-retired so probably could not get any award for lost wages. So I was wondering what a realistic upper limit for pain and suffering would be for a single person who was seriously injured. Are awards as high as 300k, 500k, or more even possible? If not, I'd say there's no point in getting insurance coverage that high even if the cost is minimal.

Note that this is in the San Francisco Bay Area. Thanks.

This is a cost versus risk analysis, OP.

Once you know what each level of coverage costs, weigh the risks, know what you are trying to protect, you make a decision.

My dad always said, "don't be insurance poor".

There are many ways to increase liability coverage, even by adding same to your homeowners policy.

I carry a $1,000,0000 liability on my auto insurance, because liability is cheap, (if you're a safe driver), yet protects your assets.

I've thought about hitting Mr. BIGSHOT in his chauffeur driven Rolls, or running into that $50,000,000 mansion.

You should discuss your options with a TRUSTED insurance broker or agent.

Ask about personal liability policies, they cover most acts of human stupidity and are very cheap.

I have one for $10,000,000.

It was more before I retired ($100,000,000).

I also still carry malpractice insurance (I'm an attorney). If you're married, involve your spouse in these discussions, too. His or her actions can and will affect YOU.

 

[giantsfan]

Thanks for the response. It's useful to know you are comfortable with $1 million auto liability although maybe your $10 million umbrella policy will give you coverage on top of that. I will look into an umbrella policy at some point.

Any opinions on uninsured motorist coverage? My only realistic claim on this coverage would be pain and suffering for one person (plus an additional amount for possible gaps in medical insurance coverage). I'm really in the dark about these types of awards. I'll take a guess that the maximum award is somewhere between mid five figures and mid six figures but that's a very wide range. It's not that money will buy me happiness in the event of a bad permanent injury but I might as well collect something (or just drop the coverage completely).

 

[army judge]

Thanks for the response. It's useful to know you are comfortable with $1 million auto liability although maybe your $10 million umbrella policy will give you coverage on top of that. I will look into an umbrella policy at some point.

Any opinions on uninsured motorist coverage? My only realistic claim on this coverage would be pain and suffering for one person (plus an additional amount for possible gaps in medical insurance coverage). I'm really in the dark about these types of awards. I'll take a guess that the maximum award is somewhere between mid five figures and mid six figures but that's a very wide range. It's not that money will buy me happiness in the event of a bad permanent injury but I might as well collect something (or just drop the coverage completely).

Remember, you aren't necessarily covering JUST your potential losses.

What if, God forbid you're returning from dinner and your very good friends, The Bickersons are in your car.

Mr. Bickerson ends up paralyzed, and Mrs. Bickerson tragically expires after thre emonths of expensive hospitalization.

The Bickersons are very wealthy, and their sons (Argue and Bicker) sue you.

Get the picture?

As I said, discuss this with your friends, relatives, spouse, and a very good insurance agent (maybe two).

You're trying to protect against losses for which you may be involved, not necessarily the causative factor.

In addition, there's always the pesky mailman, UPS guy, neighbor kid selling candy who could get hurt by your dog, or the tricycle left on your walkway by your two year grandkid.

I don't worry about me, so much at my age, but about doing something or being involved in something that causes great bodily harm to another.

 

[giantsfan]

Your example with the Bickersons is why I am leaning towards getting 1 million (or more?) for bodily injury liability.

I'm not sure if your reply was for my uninsured motorist coverage question, though. In that case, someone else is responsible for the accident and the Bickersons' sons would be filing a frivolous lawsuit against me. Hopefully, dismissal would be quick! So I'm still looking at my minimal requirements when getting this coverage. Also, at least in CA, it seems that each family's uninsured motorist coverage applies to any vehicle in which they are riding so they could collect on this coverage from either my or their policy (not sure which one gets priority).