@Smith
When luxury cars get totaled, the insurance company recoups some of their money by selling the car for parts. Expensive cars still have value as salvage. So unless you hit several high-end cars or run into a building, it’s rare for a claim to go over $100k.
Steve said:
@Smith
When luxury cars get totaled, the insurance company recoups some of their money by selling the car for parts. Expensive cars still have value as salvage. So unless you hit several high-end cars or run into a building, it’s rare for a claim to go over $100k.
Or if you hit a big truck.
Smith said:
I just got married and am working on combining my wife’s and my auto insurance. One thing I can’t figure out is why most auto insurance companies seem to cap their property damage liability coverage at $100k.
If you want more than that, you have to call in, and they put in a special request with their underwriting team. Then you have to wait 3-5 business days to see if it’s approved.
To me, $100k seems too low. With new cars hitting $50k or $60k these days, it wouldn’t take much to exceed that limit in a bad accident, especially if it involves multiple vehicles. And what if you hit a commercial truck with valuable cargo? There are a lot of scenarios where more than $100k in damage could happen.
Of course, the chance of this happening is low, and I’m not expecting to be in a crash that results in over $100k in damage. But that’s the whole point of insurance, right? To protect against those unlikely but disastrous events. My wife and I have a decent amount of assets that would be at risk if we’re only covered for $100k.
Am I missing something? When I asked for higher coverage, the agent made it seem unusual and said it would need underwriting approval. I even felt like they viewed me as higher risk just for asking for more than $100k.
Does the industry really see the risk of $100k+ damage as that small? Is there some regulation that keeps it at $100k? Or are people with more assets using different insurance companies that offer higher limits, and I’m just not aware of them?
$100k is usually fine if you have an umbrella policy on top of it. I have $1M/$1M/$100k with an umbrella.
$100k is enough for 99.9% of accidents. I’ve been doing damage appraisals for 30 years and have looked at over 40,000 wrecks. Only once or twice have I seen a single vehicle cause over $100k in damage, and those involved tractor-trailers. Once you factor in selling the salvage, it’s even less common.
The only time I’ve come close to $100k was when I wrote up a Porsche 911 for $94k, but the net claim ended up being 30% less after selling the salvage. Higher-end pickups that roll over or burn may have low salvage value and hit the $100k mark, but it’s still rare.
It’s not single vehicles that should worry you—it’s the multi-car pileups. If you’re worried, just get a $1 million umbrella policy.
Smith said:
I just got married and am working on combining my wife’s and my auto insurance. One thing I can’t figure out is why most auto insurance companies seem to cap their property damage liability coverage at $100k.
If you want more than that, you have to call in, and they put in a special request with their underwriting team. Then you have to wait 3-5 business days to see if it’s approved.
To me, $100k seems too low. With new cars hitting $50k or $60k these days, it wouldn’t take much to exceed that limit in a bad accident, especially if it involves multiple vehicles. And what if you hit a commercial truck with valuable cargo? There are a lot of scenarios where more than $100k in damage could happen.
Of course, the chance of this happening is low, and I’m not expecting to be in a crash that results in over $100k in damage. But that’s the whole point of insurance, right? To protect against those unlikely but disastrous events. My wife and I have a decent amount of assets that would be at risk if we’re only covered for $100k.
Am I missing something? When I asked for higher coverage, the agent made it seem unusual and said it would need underwriting approval. I even felt like they viewed me as higher risk just for asking for more than $100k.
Does the industry really see the risk of $100k+ damage as that small? Is there some regulation that keeps it at $100k? Or are people with more assets using different insurance companies that offer higher limits, and I’m just not aware of them?
Which insurance company is this? I’ve never had issues getting higher liability limits.
I always tell people that want state minimums that the average new car costs about $48k these days. I recommend at least $50k for property damage coverage.
Once I explain that, people usually don’t want to be on the hook for the extra $28k if they total a new car.
Smith said:
I just got married and am working on combining my wife’s and my auto insurance. One thing I can’t figure out is why most auto insurance companies seem to cap their property damage liability coverage at $100k.
If you want more than that, you have to call in, and they put in a special request with their underwriting team. Then you have to wait 3-5 business days to see if it’s approved.
To me, $100k seems too low. With new cars hitting $50k or $60k these days, it wouldn’t take much to exceed that limit in a bad accident, especially if it involves multiple vehicles. And what if you hit a commercial truck with valuable cargo? There are a lot of scenarios where more than $100k in damage could happen.
Of course, the chance of this happening is low, and I’m not expecting to be in a crash that results in over $100k in damage. But that’s the whole point of insurance, right? To protect against those unlikely but disastrous events. My wife and I have a decent amount of assets that would be at risk if we’re only covered for $100k.
Am I missing something? When I asked for higher coverage, the agent made it seem unusual and said it would need underwriting approval. I even felt like they viewed me as higher risk just for asking for more than $100k.
Does the industry really see the risk of $100k+ damage as that small? Is there some regulation that keeps it at $100k? Or are people with more assets using different insurance companies that offer higher limits, and I’m just not aware of them?
Props to you for wanting to be properly insured. $100k won’t be enough if you crash into a semi. These trucks can be worth $200k now, and their trailers and cargo can each add another $100k. You see these vehicles on the road every day.
Smith said:
I just got married and am working on combining my wife’s and my auto insurance. One thing I can’t figure out is why most auto insurance companies seem to cap their property damage liability coverage at $100k.
If you want more than that, you have to call in, and they put in a special request with their underwriting team. Then you have to wait 3-5 business days to see if it’s approved.
To me, $100k seems too low. With new cars hitting $50k or $60k these days, it wouldn’t take much to exceed that limit in a bad accident, especially if it involves multiple vehicles. And what if you hit a commercial truck with valuable cargo? There are a lot of scenarios where more than $100k in damage could happen.
Of course, the chance of this happening is low, and I’m not expecting to be in a crash that results in over $100k in damage. But that’s the whole point of insurance, right? To protect against those unlikely but disastrous events. My wife and I have a decent amount of assets that would be at risk if we’re only covered for $100k.
Am I missing something? When I asked for higher coverage, the agent made it seem unusual and said it would need underwriting approval. I even felt like they viewed me as higher risk just for asking for more than $100k.
Does the industry really see the risk of $100k+ damage as that small? Is there some regulation that keeps it at $100k? Or are people with more assets using different insurance companies that offer higher limits, and I’m just not aware of them?
I’m an insurance agent. You can get up to $500k in property damage with a lot of big companies. Whoever told you otherwise doesn’t know what they’re talking about.
@Brown
I’ve never seen $500k for property damage. It usually caps out at $250k, and after that, you need an umbrella policy.
DeMarcus said:
@Brown
I’ve never seen $500k for property damage. It usually caps out at $250k, and after that, you need an umbrella policy.
State Farm, Allstate, Liberty Mutual, and others all offer it. Go on their websites and do a quick quote—you’ll see the option for $500k.