3 ms·

I carry $1M on my vehicle plus an umbrella policy of $4M.

balderdash 3y ago
Yeah I have $500k/$500k liability that (no collision - my car isn’t worth much) and it costs $100/mo and another $5m liability with $1m UM and that costs $25/month so I’m a little confused about the comments around liability being expensive - in my experience it’s the collision coverage that is so expensive I think the annual premium for it was going to be like ~10%-15% of the insured value of the car
- Scoundreller 3y ago
  And the liability premiums aren’t linear. Most claims are for the smaller amounts, not common to have multi-million dollar claims (though it does happen), so that fifth million of coverage is cheap. The thing is, say I get sued for $100m. It’s great for my victims that I paid extra all these years for $5m in coverage, but I’m going bankrupt either way. Indeed collision on an older vehicle often doesn’t make sense. And could result in your vehicle prematurely salvaged.
  - bombcar 3y ago
    The dollar amount is basically “how hard will the insurance company’s lawyers fight for me?” If you have many millions you need much different insurance than normal plebeians.
    - balderdash 3y ago
      Not really - if you’re involved in a bad auto accident you are going to be sued - ending up with a large judgement against you (because your insurance only covered $300k of a $1m judgement still leaves you on the hook for $700k) is a horrible outcome, rich or poor. You want liability protection such that your assets (whether small or large) are unlikely to be impacted by a reasonably foreseeable outcome I.e. $300k of liability covers 55% of likely outcomes vs $3m covering 85%
  - balderdash 3y ago
    Agreed - I wish I had better data but it just feels like a low seven figure outcome could realistically be the outcome of many serious traffic accidents I’m solving for a 3rd standard deviation event but only having a couple hundred thousand of coverage feels like your solving for the lowest 1-2 quartile of outcomes.
- tothrowaway 3y ago
  Can you share which company your $5m policy is with? I'm considering umbrella coverage, and $25/month is a crazy good deal.
  - bombcar 3y ago
    Most companies that do home AND auto will offer it. The trick (not really a trick) is that the umbrella can ONLY be added after you maximize coverage on home and auto. Check the bogleheads forum for discussions on insurance.
    - astura 3y ago
      > the umbrella can ONLY be added after you maximize coverage on home and auto. This isn't universally true - I have an umbrella policy with USAA. They require me to have a minimum of coverage on my home and auto to have the umbrella policy, but it's not the maximum they offer. It's a couple tiers down. Of course, the price for the umbrella policy might depend on your home/auto coverage.
  - balderdash 3y ago
    Chubb - you need to go through a broker and I should note i also have homeowners insurance that has some liability coverage which I suspect also influences the umbrella rate - just find a broker that sells Chubb/aig/natgen/travelers that cater to high net worth individuals (you don’t need to be one! I had a renters insurance policy from Chubb right out of college) But those policies tend to be more customizable - and my experience is that they’re more inclined to pay claims
function_seven 3y ago
I just now changed my limits to $300k/$500k, and the monthly premium increase was—not joking—about $3.50. That was the highest choice I had through my provider’s app. I might give them a call and see what else I can get.
- astura 3y ago
  If you wanna go higher then you'd purchase an umbrella policy. They are affordable though and pretty much a no brainier for anyone who has any sort of assets they'd like to protect. I have a two million dollar umbrella policy.
- hipadev23 3y ago
  Nice work. It's such a tiny incremental cost (if you're already carrying a policy) for a massive increase. You accidentally rear-end someone with a g-wagon and that $3.50/mo is really going shine.

Yeah I have $500k/$500k liability that (no collision - my car isn’t worth much) and it costs $100/mo and another $5m liability with $1m UM and that costs $25/month so I’m a little confused about the comments around liability being expensive - in my experience it’s the collision coverage that is so expensive I think the annual premium for it was going to be like ~10%-15% of the insured value of the car

Scoundreller 3y ago
And the liability premiums aren’t linear. Most claims are for the smaller amounts, not common to have multi-million dollar claims (though it does happen), so that fifth million of coverage is cheap. The thing is, say I get sued for $100m. It’s great for my victims that I paid extra all these years for $5m in coverage, but I’m going bankrupt either way. Indeed collision on an older vehicle often doesn’t make sense. And could result in your vehicle prematurely salvaged.
- bombcar 3y ago
  The dollar amount is basically “how hard will the insurance company’s lawyers fight for me?” If you have many millions you need much different insurance than normal plebeians.
  - balderdash 3y ago
    Not really - if you’re involved in a bad auto accident you are going to be sued - ending up with a large judgement against you (because your insurance only covered $300k of a $1m judgement still leaves you on the hook for $700k) is a horrible outcome, rich or poor. You want liability protection such that your assets (whether small or large) are unlikely to be impacted by a reasonably foreseeable outcome I.e. $300k of liability covers 55% of likely outcomes vs $3m covering 85%
- balderdash 3y ago
  Agreed - I wish I had better data but it just feels like a low seven figure outcome could realistically be the outcome of many serious traffic accidents I’m solving for a 3rd standard deviation event but only having a couple hundred thousand of coverage feels like your solving for the lowest 1-2 quartile of outcomes.
tothrowaway 3y ago
Can you share which company your $5m policy is with? I'm considering umbrella coverage, and $25/month is a crazy good deal.
- bombcar 3y ago
  Most companies that do home AND auto will offer it. The trick (not really a trick) is that the umbrella can ONLY be added after you maximize coverage on home and auto. Check the bogleheads forum for discussions on insurance.
  - astura 3y ago
    > the umbrella can ONLY be added after you maximize coverage on home and auto. This isn't universally true - I have an umbrella policy with USAA. They require me to have a minimum of coverage on my home and auto to have the umbrella policy, but it's not the maximum they offer. It's a couple tiers down. Of course, the price for the umbrella policy might depend on your home/auto coverage.
- balderdash 3y ago
  Chubb - you need to go through a broker and I should note i also have homeowners insurance that has some liability coverage which I suspect also influences the umbrella rate - just find a broker that sells Chubb/aig/natgen/travelers that cater to high net worth individuals (you don’t need to be one! I had a renters insurance policy from Chubb right out of college) But those policies tend to be more customizable - and my experience is that they’re more inclined to pay claims

function_seven 3y ago

I just now changed my limits to $300k/$500k, and the monthly premium increase was—not joking—about $3.50. That was the highest choice I had through my provider’s app. I might give them a call and see what else I can get.

astura 3y ago
If you wanna go higher then you'd purchase an umbrella policy. They are affordable though and pretty much a no brainier for anyone who has any sort of assets they'd like to protect. I have a two million dollar umbrella policy.
hipadev23 3y ago
Nice work. It's such a tiny incremental cost (if you're already carrying a policy) for a massive increase. You accidentally rear-end someone with a g-wagon and that $3.50/mo is really going shine.