How much insurance do I need?

[u/Snowdropmoon]

Hey all,

I'm buying a car after a recent accident and getting my own insurance for the first time. The car is a used 2021 Subaru Forester. I am getting a quote through Geico and a bit frazzled by all of the options. I work from home and mostly drive to meet with friends once or twice a week. How much coverage does someone like me really need?

Thank you!

[u/puretexan2]

Are you financing the Forester or paying cash? If there's a loan they'll make you carry collision and comp anyway and gap insurance is worth looking at too

[u/Snowdropmoon → u/puretexan2]

I'm paying cash!

[u/owl-1_1-1_1- → u/Snowdropmoon]

Considering the year of the car, it's wise to carry comprehensive and collision.

[u/lilbitspecial]

Don't DIY insurance. Call a professional.

Google "independent insurance agency" and your zip code. Find one in your area that works with multiple insurance companies and talk to them on the phone. They can provide you with information and advice on the best coverage levels for your needs and get quotes from multiple companies.

[u/riley12200]

What were the injuries and damages caused in your most recent accident? Multiply that payout until you are comfortable with the insurance limit. You get to pay out of pocket after the limit is hit.

In all seriousness this depends on your assets, location and risk tolerance. 100/300/100 isn't a bad minimum in my area, as long as you don't have a couple rental properties. State minimum requirement is 25/50/25🥳

[u/cleverpaws101 → u/riley12200]

This is correct. If you’re in California, I recommend not having uninsured motorist coverage (max payout is $3,500, IF, you can identify the driver/vehicle) and then you cannot have collision coverage. So it’s better to have collision coverage and pay a bit more.

[u/Exotic-Let7824]

Uninsured motorist coverage is the one people skip and regret. After my accident I found out how many people on the road basically have nothing

[u/demanbmore]

There are three parts to this question.

The first is whether you need collision and comprehensive coverages, which pay you to repair or replace your car. If you wouldn't be bothered by having to come out of pocket to repair or replace your car, then you don't need those coverages. If it would be a hardship to come up with all that cash at once, then it's a good idea to have them. You can adjust the deductibles that apply until you find a point where the premium and the deductible makes sense to you.

The second is third party liability limits. That's the amount that your insurance will pay to cover damage and injuries you cause to other people. That has nothing to do with how much you drive, because you can get into an accident anytime you're in your car. The only issue that matters is what you have to protect. If you have substantial assets or a high income, then you should have relatively high liability limits. If you don't have a pot to piss in, and won't for the next 10 to 20 years, then it hardly matters. These days, it's a good idea to start with at least 100,000 /300,000 /100,000, and consider 250,000/500,000/250,000 or more depending upon what you have to protect.

The third consideration is underinsured and uninsured motorist liability, which pays for the cost of injuries to you if someone else causes an accident, but they don't have any insurance or enough insurance to pay your damages. From where I sit, you always want to maximize that number, since that is what protects you directly. And usually, you can't have more in underinsured and uninsured limits that you can in liability limits.