Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Auto Insurance Limits for a Newbee
Old 02-06-2010, 09:22 PM   #1
Recycles dryer sheets
Join Date: Dec 2006
Posts: 197
Auto Insurance Limits for a Newbee

This coming fall I will be starting my first full-time position and will have to buy my own auto insurance. I am currently covered under my parent's policy which has the highest limits (something like 500k) plus an umbrella policy.

As someone just starting out with ~10k in savings and a car worth about 10k to my name do I need the same policy limits for myself or would something lower be more appropriate?

If it makes any difference my salary will be about 50k but expect to be significantly higher in the future.

RedHawk is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 02-07-2010, 03:17 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
bbbamI's Avatar
Join Date: Dec 2006
Location: Dallas 'burb
Posts: 9,142
I think you should do just fine with the required limits of liability by your state at this point in your life.

However, for additional peace of mind, you can have them give you a quote on higher liability coverage. If it's not too expensive, you may want to consider it.

There's no need to complicate, our time is short..
bbbamI is offline   Reply With Quote
Old 02-08-2010, 01:38 PM   #3
Thinks s/he gets paid by the post
BigMoneyJim's Avatar
Join Date: Feb 2003
Location: DFW
Posts: 2,664
The last time I checked, the minimum property damage coverage in my state was $25k. There are a lot of cars out there that can be totaled for more than $25k. The injury limits are low, too. I got quotes from my agent, and doubling my coverage didn't cost much extra.

I'm the farthest thing from a legal expert, but a court judgment can be assesed against future earnings and assets, yes? I definitely want enough coverage to handle totaling a car and putting a couple of people through some hospitalization.

Side note: I was going to get a $1000 deductible, but the difference in premiums for a $500 deductible were tiny in my case, so I have a $500 deductible.
BigMoneyJim is offline   Reply With Quote
Old 02-08-2010, 01:56 PM   #4
ziggy29's Avatar
Join Date: Oct 2005
Location: North Oregon Coast
Posts: 16,306
There are also state laws to consider, such as:

* Can your wages be garnished by lawsuits in your state if there is an award that's greater than your assets and insured liability coverage?

* Can your homesteaded residence, retirement plans, insurance and pensions be seized by judgments against you in your home state?

If "yes" to either of these you probably want considerably more liability than your assets would cover.
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
ziggy29 is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
auto insurance warning mathjak107 Other topics 19 12-25-2006 03:26 AM
Auto Insurance snowbird Life after FIRE 6 09-04-2005 11:24 AM
Auto and home insurance... LRAO FIRE and Money 5 01-28-2005 05:58 PM
Need Help with Auto Insurance Info KB FIRE and Money 9 08-17-2004 01:33 PM

» Quick Links

All times are GMT -6. The time now is 11:44 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2020, vBulletin Solutions, Inc.