Is 500k/500k Enough? or Should I Spend an Extra $80 to Raise It to 1-mil/1mil?

Sep 30, 2013

  1. badkitty
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    badkitty Expert

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    While reviewing my insurance policy online, I noticed that I currently carry
    only 500k/500k. I clicked on the button to see what the rates would be if
    I changed it to 1-mil/1-mil. To my surprise, it would only raise my premium
    by about $80 for the entire year. For another $40/year, I can also raise
    the uninsured coverage from the current 500k/500k to 1-mil/1-mil as well.
    $120 a year is only $10 extra per month. Consider that's for all three cars
    on my policy, it seems pretty cheap to me. (just $3.33 extra per month per
    car)

    Before I finalize this change, I'm wondering what the pros and cons are for
    raising it to 1-mil/1-mil. I know it depends on each person' assets, incomes,
    and other factors... I'm just wondering if doubling the coverage like that will
    raise some red flags with the insurance company or something like that?
    I have a spotless record. (except for a deer collision 8 years ago, which I was
    to was considered to be a no-fault claim?)

    Thanks in advance for any advice! :)
     
    badkitty, Sep 30, 2013
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  2. FullAuto
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    FullAuto Super Genius

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    That's cheap. I'd do it, especially for the UM.

    I carry 250/500/100 with a 1M PLUP on everything except my truck. I have 500/500/100 on my truck with 500/500 UM (that applies to all my cars). I've love to have 1M/1M UM but the premium is a bigger jump.
     
  3. USF3983
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    USF3983 Super Genius

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    No that's common. Preferred companies with higher liability options who recognize good risks don't expect to have to pay out that high ever.

    It might make lawyers salivate though, lol.
     
    USF3983, Oct 3, 2013
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  4. badkitty
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    badkitty Expert

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    I guess I was wrong when I assumed the premium increase from 500k/500k
    to 1-mil/1-mil was the same percentage increase for everybody?

    Would you mind giving me a ball park figure of how much extra premium
    your insurance charges you if you want to got to 1-mil/1-mil on both
    liability and UM?

    THanks! :)
     
  5. rudy323
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    rudy323 Super Genius

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    is 500k enough? completely depends on your assets and income potential and you're risk tolerance

    is an extra $80 a year a bet you would like to lay if you lose the "accidently kill someone with your car" lottery?

    It's up to you to hedge your bets
     
    rudy323, Oct 10, 2013
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  6. Sales71
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    Sales71 Guru

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    My Advise for my clients is to do 250/500 limits and add a personal PUP for 1,2,3,4,5 mil depends on what they can afford. I have 500/500 on my auto insurance and 2 mil pup policy. I wanted to do 250/500 but the limits of the pup needed to be 500/500
    So take the $120 a year and buy a pup policy so your autos and home would be covered for a million.
    :swoon::goofy:
     
    Sales71, Oct 10, 2013
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  7. Justin Bilyj
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    Justin Bilyj Guru

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    The other day, I wasn't watchinging coming out of tye drive, almost hit a runner, scared the **** outa me...later that day I saw a kid get hit by a bike, the bike was MANGLED.
    Always get higher coverage if you
    A.

    1. Are risk prone on tge road (u know who u are)
    2. Have a family who's future needs to protected against lawsuit.
    3. You have assets worth suing over
     
  8. DawnPatrol
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    DawnPatrol New Member

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    Yep, the PLUP is a better way to go, and it will include Personal Injury, where the HO policy won't (unless it had an endorsement)