Should I choose car insurance coverage based on my income and assets?
I currently have about $50,000 in liquid assets, but I read that you should have more coverage than that to protect your assets. What car insurance coverage should I get?
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Answered on Apr 23, 2021
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“Generally, you should probably get liability insurance that’s far more than the value of your assets.
While you might think a 25/50/25 policy will do the trick, if it doesn’t cover the damages for the other person (medical and property), they can sue you for the difference. That means they can come after all of your assets.
As a result, a liability policy of 50/100/50 or 100/300/100 is advised. You can also add an umbrella policy that will expand to cover claims in excess of your regular auto policy. That’s the best plan you can have so you don’t lose all of your hard-earned money.”
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