Is there such a thing as too much auto insurance when you're also a homeowner?
My wife and I are in the market for our first home. She thinks we need to increase our auto insurance limits to $1 million; I think the current limits of 50/100/50 are fine. The budget for the house is only $150,000. What do you think?
“This is a debate that happens all the time! How much coverage is too much?
Your wife is looking at the big picture. While liability coverage of 50/100/50 is okay for a standard auto accident, what happens if there is a bigger one with several cars and drivers?
You could be sued for anything over the limits of your auto policy, and in most states, you could also be sued for pain and suffering that the accident might have caused.
Now that you are married, your assets are seen as one. So add up the price of your car(s), your new home, any 401(k) or retirement funds, and your inheritance, and that is the amount of money you are looking to protect.
This might be a good time for you and your wife to sit down with a local insurance broker who handles auto, home, life, and umbrella insurance, as well as estate planning. They can point you in the right direction.”
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