$300K in assets; pls help w/ auto insurance coverage

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sighchological
Posts: 164
Joined: Sat Feb 02, 2013 12:12 pm

$300K in assets; pls help w/ auto insurance coverage

Post by sighchological » Wed Nov 07, 2018 11:21 pm

Hello,

I have to renew my GIECO auto insurance in 2 days, any help selecting coverages would be appreciated.

Assets:

Home equity: $150K-$200K (6th year of 30 year mortgage)
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Non retirement accounts:

$15K in savings. (emergency fund)

$51 K in joint Vanguard’s taxable account
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Retirement accounts:

$100K in wife’s 403b

$20K in wife’s Roth IRA

$82K in my 457B

$25K in my Roth IRA

$9K in Solo 401K
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($236K in retirement accounts, and $66K in taxable accounts.)

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Current auto insurance for a 2010 honda accord with 82 miles and a 2007 ford freestar (van)

Bodily Injury Liability: 100K/300K

Property Damage Liability
: 100K per occurrence

Basic Personal Injury Protection 50K per person

Uninsured Motorist - Supplementary Uninsured Motorist: $100,000 per person/$300,000 per occurrence
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2010 honda accord has:

Comprehensive: $1,500 ded. with Non-ded Glass

Collision :Deductible: $1,000
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2007 ford freestar has no comprehensive or collison

Questions:

1) Should I increase my liability as I have the following?

a. $236K of my assets are protected in retirement accounts (I believe Roth IRA is protected, I live in New York)
b. $66K of assets in taxable accounts
c. $150K-$200K home equity

2) Should I purchase an umbrella policy? I don’t use GEICO homeowners, can I still purchase an umbrella policy?

3) What do you think of dropping comp/collision for the 2010 honda accord? The resale value is around $5K.

golfCaddy
Posts: 722
Joined: Wed Jan 10, 2018 10:02 pm

Re: $300K in assets; pls help w/ auto insurance coverage

Post by golfCaddy » Wed Nov 07, 2018 11:31 pm

Search and you can find many threads on umbrella insurance.

furwut
Posts: 1334
Joined: Tue Jun 05, 2012 8:54 pm

Re: $300K in assets; pls help w/ auto insurance coverage

Post by furwut » Thu Nov 08, 2018 6:08 am

I think you need to obtain a reasonable amount of liability insurance to protect against a potential large judgment. Your present level of assets shouldn’t enter into the equation. Should you be underinsured it’s possible you will have to give up future earnings and assets to satisfy the claim.

So yes, this generally means you need umbrella insurance.

student
Posts: 2574
Joined: Fri Apr 03, 2015 6:58 am

Re: $300K in assets; pls help w/ auto insurance coverage

Post by student » Thu Nov 08, 2018 6:49 am

furwut wrote:
Thu Nov 08, 2018 6:08 am
I think you need to obtain a reasonable amount of liability insurance to protect against a potential large judgment. Your present level of assets shouldn’t enter into the equation. Should you be underinsured it’s possible you will have to give up future earnings and assets to satisfy the claim.

So yes, this generally means you need umbrella insurance.
+1.

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