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Started By
Message
Car Insurance Experts, opinion needed.
Posted on 6/21/18 at 9:07 am
Posted on 6/21/18 at 9:07 am
I am in a situation where I am questioning coverage amounts needed.
Current situation is:
Umbrella Policy in place.
Own and paid for 2014 luxury sedan, daily driver for spouse, full coverage 100/300 limits
Own and paid for 2007 SUV, Daily driver for me, full coverage 100/300 limits
Considering the purchase of a commuter car, purchase price of $7,000.
My question is, since the value of my SUV, which is currently used as my commuter car, is less than $5,000 and horrible on gas mileage, I am considering acquiring a small commuter car for netter gas mileage. If I were to purchase this smaller commuter car and maintain my umbrella policy, what limits should I carry on the small commuter car and the SUV?
Current situation is:
Umbrella Policy in place.
Own and paid for 2014 luxury sedan, daily driver for spouse, full coverage 100/300 limits
Own and paid for 2007 SUV, Daily driver for me, full coverage 100/300 limits
Considering the purchase of a commuter car, purchase price of $7,000.
My question is, since the value of my SUV, which is currently used as my commuter car, is less than $5,000 and horrible on gas mileage, I am considering acquiring a small commuter car for netter gas mileage. If I were to purchase this smaller commuter car and maintain my umbrella policy, what limits should I carry on the small commuter car and the SUV?
4
Posted on 6/21/18 at 9:19 am to jmon
quote:
I am in a situation where I am questioning coverage amounts needed.
Current situation is:
Umbrella Policy in place.
Own and paid for 2014 luxury sedan, daily driver for spouse, full coverage 100/300 limits
Own and paid for 2007 SUV, Daily driver for me, full coverage 100/300 limits
Considering the purchase of a commuter car, purchase price of $7,000.
My question is, since the value of my SUV, which is currently used as my commuter car, is less than $5,000 and horrible on gas mileage, I am considering acquiring a small commuter car for netter gas mileage. If I were to purchase this smaller commuter car and maintain my umbrella policy, what limits should I carry on the small commuter car and the SUV?
I was under the impression that you had to carry max limits available through your auto policy. Certainly the insurance company writing the umbrella policy will guide you on the required coverage for your auto policy.
Posted on 6/21/18 at 9:23 am to jmon
quote:
I am considering acquiring a small commuter car for netter gas mileage. If I were to purchase this smaller commuter car and maintain my umbrella policy, what limits should I carry on the small commuter car and the SUV?
A) You must maintain certain level of limits for the Umbrella policy to kick in.
B) The value and gas efficiency of a vehicle has nothing to do with liability limits being carried.
C) When the value of your vehicles go down, your comp and collision cost are decreasing as well.
D) Maintaining high levels of liability is cheap in the grand scheme of things.
Posted on 6/21/18 at 9:23 am to lnomm34
quote:
Certainly the insurance company writing the umbrella policy will guide you on the required coverage for your auto policy.
Perhaps I am being a bit untrusting, however, I don't think an insurance company would have my best fiduciary interest in mind. I am looking to know if I c=should lower the full coverage on my SUV to just collision and what "limits" I should carry on the potential small commuter car, having the umbrella in place for anything physically catastrophic. I would keep the limits the same on the luxury SUV. Maybe, I am just trying to be too cheap??
Posted on 6/21/18 at 9:29 am to jmon
quote:quote:Perhaps I am being a bit untrusting, however, I don't think an insurance company would have my best fiduciary interest in mind. I am looking to know if I c=should lower the full coverage on my SUV to just collision and what "limits" I should carry on the potential small commuter car, having the umbrella in place for anything physically catastrophic. I would keep the limits the same on the luxury SUV. Maybe, I am just trying to be too cheap??
Certainly the insurance company writing the umbrella policy will guide you on the required coverage for your auto policy.
I'm not an insurance expert, but based on what you're writing above, you're definitely not either.
What I'm saying is that the umbrella policy writer will REQUIRE you to maintain certain liability limits on your automobiles. Find out what they require.
Posted on 6/21/18 at 9:42 am to lnomm34
Got it and thanks!
Posted on 6/21/18 at 12:20 pm to jmon
quote:
Perhaps I am being a bit untrusting, however, I don't think an insurance company would have my best fiduciary interest in mind. I am looking to know if I c=should lower the full coverage on my SUV to just collision and what "limits" I should carry on the potential small commuter car, having the umbrella in place for anything physically catastrophic. I would keep the limits the same on the luxury SUV. Maybe, I am just trying to be too cheap??
You risk is the same regardless of which car you drive, so liability coverage should be the same on all vehicles, I also don't think you can do it any other way. Every insurer I talked to about umbrella coverage required auto liability to be 500K.
Posted on 6/21/18 at 2:16 pm to EA6B
[quote]Every insurer I talked to about umbrella coverage required auto liability to be 500k
This is true
This is true
Posted on 6/21/18 at 6:29 pm to jmon
Same liability limits as your other cars. 100/300 is on the low side for umbrella carrier’s minimum liability limits on primary policy. Normally for most umbrellas, primary policy has to be 250/500 or 500 CSL
Since the vehicle value is lower, maybe consider doing without comp and collision. See what the premium difference would be and decide if its worth the risk of coming out of pocket if something happens to your car.
Since the vehicle value is lower, maybe consider doing without comp and collision. See what the premium difference would be and decide if its worth the risk of coming out of pocket if something happens to your car.
Posted on 6/23/18 at 9:59 am to jmon
I am a retired insurance agent. The value of your vehicle does not affect your liability. An umbrella policy is in effect an excess liability policy. That means it pays in excess to the underlying policy. Most Umbrella writers require a minimum liability limit before they pay. As an example, if they require $250000 and you only carry $100000, they would pay in excess of $250000. That means you have to pay $150000 out of pocket before they pay. Adjust comp and collision deductibles to reduce cost. If you carry UM, look into UM property damage coverage.
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