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?
Answer provided by
Answered on May 06, 2021
“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.”
Did this answer help you?
Ask us a question by email and we will respond within a few days.
Have a different question?
You can meet us at our office and discuss the details of your question.
Browse by topics
What others are asking
When do you consider a car loan term length to be too long?
I'm not sure what term to get for my car loan since there are several options available. When would a car loan be too long?
Mar 18, 2021
What's the penalty for driving without car insurance in California?
I was late making my car insurance payment because of a lack of funds, and my company canceled my policy. What penalty will I face for not having insurance in California? I'm going to get insurance again as soon as I have enough money.
Apr 12, 2021
Should I raise my liability insurance limit to $1 million if it doesn't cost that much more?
I currently have 100/300/100 liability insurance. When I started to shop around, I found that I could increase this to $1 million/$1 million/$500,000 for about $10 a month extra. Is this worth it?
Apr 28, 2021