What Car Insurance Limits Should I Have?

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   David G. Pipes, CLU®, RICP®

   Business Development Officer, T.D. McNeil Insurance Services, Fresno, California

   You should choose a liability limit that is more than your net worth plus two year’s salary.   While this may not always be appropriate it recognizes that protecting your assets is very important.  Choosing the highest limits available for liability coverage always make good sense.  Recently a motorist struck a pedestrian and the settlement was in excess of $750,000.  That is beyond the limits of most auto policies.  You should consider an umbrella to extend those limits even higher.  You could save a few dollars by electing the highest deductible for comprehensive and collision coverage.  You should elect uninsured/underinsured motorist coverage that is equal to the limit for liability on the policy.  You should select the maximum amount of medical payment coverage and accidental death and dismemberment coverage.  Purchasing roadside assistance coverage and rental car reimbursement is also important.

   Answered on June 9, 2014

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