Auto Insurance: How Much is Enough?
Posted date : Nov 7, 2017.
Dear Bird Talk,
When renewing my automobile insurance, the agent recommended that anyone travelling south should carry five million dollars of liability coverage. Is this a reasonable amount to carry, or is the insurance company doing a sell job?
The answer to both of your questions is “yes.” There is an old adage that says, “When you need your insurance, you never have enough.” Many automobile insurers limit their liability limits to $2 million or even $1 million dollars, and there is a reason for this. They have seen, and paid, claims that are more than these amounts.
We currently recommend $2 million dollars but, if the higher coverage is available and cost-effective, you should probably purchase it. Also remember that claims in the U.S. will be in U.S. dollars. Ask your insurance broker about “Umbrella Liability.” It can be a very effective solution to obtaining higher policy limits.