Joined: 30 Jan 2010
Posts: 16
 Posted: Fri Mar 05, 2010 12:05 pm?? ?Post subject: Car insurance for household with high disposable income |  |
| Thus far I've been on someone else's policy and I'm considering switching to my own car insurance. However, I'm new to all this and am wondering what level of policy makes the most sense for me.
1999 Isuzu Rodeo - Worth about $4500
My household has 2 drivers including myself. Our household has an income of roughly $220k. We have about $70k per year left over after all expenses. Given this, should my insurance amount be the minimum allowed by the law? Since I can probably afford to replace the car if necessary. Should I get collision protection on the Rav4? I'm considering Geicko as the insurer at this time. If there any good resources you can provide in picking an insurer, that would be also greatly appreciated. | |
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| Posted: Fri Mar 05, 2010 12:19 pm?? ?Post subject: | |
| Do you like being sued?
Do you like paying large judgments? With a high income, you should have lots of liability insurance. On the other side, you can pay any large deductibles our of your regular income, so you just set your deductibles for collision etc on the high side. Start here for some explanations of the different forms of coverage:
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| Posted: Fri Mar 05, 2010 5:15 pm?? ?Post subject: | |
| We have auto and umbrella insurance with GEICO. Our $1MM umbrella costs a little over $100 a year. We'd buy it even if it was substantially more. If you drive a car, you need umbrella liability because of the potential for doing enough damage to trigger a large lawsuit, in my opinion.
I like GEICO because it's part of Berkshire Hathaway, so the financial stability should be good, and I believe any B-H subsidiary is going to be well managed and offer fair value. I don't care about getting the cheapest possible price. Insurance companies that lowball price usually lowball coverage and service, too. Your wife needs Pharmacists Professional liability. That?s going to be coverage separate from your personal liability, auto liability and umbrella coverages. One article discussing pharmacist?s liability: http://www.rxrecruiters.com/ph....urance.htm Good luck! John Jean-Paul Sartre, writer and philosopher (1905-1980) | |
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Joined: 11 Jan 2010
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| Posted: Sat Mar 06, 2010 4:09 am?? ?Post subject: | |
| I've found that having high bodily injury, property damage and uninsured/underinsured limits on your auto policy typically does not cost as much as going from the highest collision/comprehensive deductible to the lowest one. Besides, I view it a bit like income protection, as others have alluded to. With a fully-stocked emergency fund, you should be able to save by cranking up the collision/comprehensive coverage.
When I shopped around for insurance about six months ago, I looked online for all the independent insurance brokers in the area (e.g. didn't have Allstate or State Farm in their name). I narrowed the list down to three or so, sat down with each of them and had them run quotes. One was great to work with, one misplaced our info and was way too casual, and the other didn't show up to the appointment. Guess who got our business? Wife and I have been very happy thus far. Ditto the umbrella policy. It's hella-cheap for peace of mind. | |
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| Posted: Wed May 12, 2010 3:06 pm?? ?Post subject: | |
| Not only do a lot of people need an umbrella to cover their personal assets, it's also helpful for those sorts of things that your auto and personal liability (on your homeowners policy) DON'T cover. Personal injury suits are one of those things. Liability issues that may arise away from your home are another.
No matter how frivolous personal injury suits can be, an umbrella will still cover your legal defense costs. And no matter how much liability coverage you have on your homeowners policy, unless you have a specific endorsement extending personal injury liability coverage, you typically don't have any unless you buy an umbrella. You may want to ask your insurer. Even though I don't have a staggering number of assets, I still maintain $250k/$500k limits on my auto policy (the minimum amount my insurer requires for an umbrella), $1MM in liability on my homeowners, and a $1MM umbrella policy. Since the umbrella policies nearly give away liability insurance, you'll hardly ever regret buying it, I would think. | |
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Source: http://www.bogleheads.org/forum/viewtopic.php?t=51357&start=0&mrr=1314618673
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