Does a 100/300/100 liability insurance policy offer too much coverage?
I'm thinking of upping my liability limits, but I don't know if a 100/300/100 policy is too much. I currently have a net worth of $50,000 and I make $55,000 per year.
May 04, 2021
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Answered at May 04, 2021
Liability CoverageCar Insurance
“A general rule is to take your net worth and add it to three times your annual salary.
In your case, this would be $215,000. That should be your bottom-line minimum for car insurance coverage.
Therefore, you should consider getting something like 250/500/250 liability coverage.
But always remember that hospital visits aren’t cheap. You may even want to consider getting limits up into the million-dollar range if you can afford it.
To pay an affordable rate for more coverage, don’t forget to compare car insurance quotes online.”
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