How much car insurance do I need?

[Patricia T.]

Hi all! I wasn't sure where to post this question. For car insurance, my agent is telling me that I need a certain level of coverage. According to the agent my main concern shouldn't be the car but rather the damage that I can cause to others in an accident that's my fault and that this could/would expose my assets (I do own several properties). I would love some feedback on this! Thanks!

[John Mocker]

Patricia,

I generally recommend high coverage for Liability on Auto Insurance policies.  First, for property damage you cause, if the car is  new car or you damage multiple cars, the costs could easily be $50,000 - $100,000.  With Bodily Injury, there is no limit on what a Jury can award.  Without knowing more about your situation, I would think you would want limits of $300,000 to $500,000 backed with a an Umbrella policy (those policies are generally issued in $1,000,000 increments).  The Umbrella will also cover over your Homeowners Liability and may also cover over your rental properties.

Remember, if you buy low limits (like the state minimums) you will be responsible for the costs that exceed those limits