As has been stated, lawyers are lazy and will only pursue a case with someone who has insurance.
Isn't it true that your house, car, retirement, pensions are not up for grab, AKA OJ?
So I wonder if having all this extra insurance actually makes it definite that you'll be sued.
The guy that has no insurance is that safest of all, that's why they push uninsured Motorist insurance.
Now there's a concept, let me buy insurance for everyone else and myself, because others don't have insurance?

Granted if you have tons of other "assets" then that could be a concern, but not likely.

I agree most attorneys are lazy. That isn't the whole equation though. Insurance companies have the right to and will subrogate against you if they pay out on a claim for which you are responsible. Can you declare bankruptcy to protect assests, sure. But going through all of that and putting your life in turmoil to save a buck doesn't make much sense to me.

I would bump up the coverage, especially as you pointed out the PD 50k limit. One new high end car or truck, or two more reasonably priced vehicles and you have likely exceeded that amount. Hell a new Silverado now a days can easily get to well over 70K.

Laws vary by state therefore one needs to consult an attorney and or a good financial adviser before making any assumptions.
I’m not a lawyer nor do I even play one on TV but have tried to get some understanding of financial liabilities due to my aviation activities.
It seems like a primary residence and a car are safe from just about any judgment. Pensions and social security are safe in just about every state, if not every state.
Most states consider 401Ks to be the same as pensions. On the other hand, IRAs are considered like pensions in some states but it appears like in other states that money could be ripe for picking by a lawyer in a lawsuit. Again, it’s a matter of state law and the laws vary by state.
And a car might be safe but I doubt that a collection of cars is safe, so you might get to keep one but have to sell the rest to settle a judgment.
I’ve started seeing a financial advisor and he asked for my insurance information, and mentioned umbrella coverage.
I’m sure when he finishes his review he’ll tell me I need to get that. He’ll probably also tell me I need nursing home insurance and pilot insurance. When all is said and done my whole paycheck soon will probably go to pay insurance bills.

Exactly, when you're a hammer, every problem is a nail................
I'm sure there's some insurance to cover those other insurances if they go bankrupt

The poor have it easy, they don’t know know how carefree their lives are!

This is true of your home/auto policies as well.

Not to belabor this, but the insurance company is in no way defending you.
They would throw you to the wolves if it benefited them in the slightest.
They are only "defending" themselves against paying out any settlements.

.. but there is no reason to lower your coverage limits to save yourself money, or because you think insurance companies have the wrong motives.

You need limits that are appropriate for the net worth that the insurance policy is protecting. Insurance providers know the levels that are appropriate, you call and discuss it with them and update coverages every few years as your net worth increases. Because only if you have enough coverage, will a lawsuit be settled and paid out by your insurance company. The amount of a settlement will be below the amount of your limits, which protects YOUR assets from seizure to settle a lawsuit, and that settlement is all done by your insurer's attorneys, who will fight to minimize their payout, which "benefits" the insurance company, but it's really protecting you and your assets, and making the Claimant (or Plaintiff of the lawsuit) whole again - which insurance is supposed to do.

I'd never get less coverage on a car just because I drive it less.. the coverage is about protecting your assets, not the car.



This issue just came up for me.. We have USAA insurance on everything, and an Umbrella policy with 300/500/100 limits on Personal Injury, Property Damage and Death Benefit, plus 300k uninsured.
My vintage auto insurance policy with USAA's insurance partner had limits of 300/300/2, plus 300 uninsured.

Last week USAA notified me I must have the same limits on my vintage auto insurance policies as their Umbrella. I contacted my collector car insurer and upped the limits to match our Umbrella policy.

The added cost was $11.27.
- Art

Our resident insurance expert has spoken.