Shopping around for auto insurance, and I’m not too sure how much coverage is appropriate. These limits seem a bit low, but I don’t know what I should be aiming for. I’m working with a local agent—can I ask them to make suggestions?
Edit to add: the car is a 2022 Tesla Model Y. I just bought my first home, so I’m looking to bundle the auto policy with homeowners. Married, one kid, household net worth around $1.3M. I’m also thinking about adding an umbrella policy for extra liability coverage.
No, you need to increase your coverage.
Get multiple quotes, like 5-10, for 250/500 or 500 CSL, and consider adding a $1M or $2M umbrella policy, especially if you have assets, kids, or other risks. Play around with deductibles too. If you can drive five years with no accidents or claims, you might see better rates.
Make sure you’re protected from other drivers who have no or minimal insurance with UMBI (Uninsured Motorist Bodily Injury). Check out stories about how lack of UMBI coverage can turn into a nightmare—it’s essential. Personally, I go for maximum coverage, like 500 CSL with an umbrella on top, to protect against underinsured drivers.
Here’s an example of how bad things can get:
https://www.reddit.com/r/Insurance/s/ZwW3zlmcAH
You can find local agents at Trustedchoice.com.
Your liability limits should match your assets and income potential. If you’re a student with not much in savings, 50/100/50 might be okay (though I’d still recommend 100/300/100). But if you’re a high earner, like a doctor, you need much higher limits and a liability umbrella policy. Insurance should protect you from financial disaster—being sued for damages beyond your coverage would be one of those disasters.
What kind of car do you drive and what’s your overall situation? If you’ve got an older car, consider dropping comprehensive coverage and bumping up your liability instead.
I’d say these should be the minimum requirements across all states, but no, I don’t think this coverage is enough to protect you properly.
Definitely increase your liability limits. Go for 100/300 on all Bodily Injury (BI) and Uninsured/Underinsured Motorist (UM/UIM). Your property damage coverage is pretty low unless you’re in Michigan (and it’s still low even by other states’ standards). Considering new cars can easily cost $50k, I’d say aim for at least $100k in property damage coverage, and $300k wouldn’t be a bad idea either.