How Much Auto Insurance Do You Carry?

[Baron von Schtinkenbutt]

Something's very different about Canada and the US.

You guys are all talking about liability coverage well under the minimum permissible by law here in Canada.  Moldy's online calculator though won't go above $500k, while CC and I are carrying multi-million liability.  And finally I specifically remember that upping the liability amount above a million really didn't cost all that much.

I once inquired with my agent about a general personal liability policy (one that kicks in for any kind of civil liability, regardless of situation).  I was only asking about $500k or $1m.  My agent looked at me like I was crazy and basically refused to write me one.

[alfred russel]

Something's very different about Canada and the US.

You guys are all talking about liability coverage well under the minimum permissible by law here in Canada.  Moldy's online calculator though won't go above $500k, while CC and I are carrying multi-million liability.  And finally I specifically remember that upping the liability amount above a million really didn't cost all that much.

Of course. The US is an outlier on all this stuff. It is why US citizens are sometimes excluded from international policies, and international policies often apply everywhere but the US.

[Barrister]

Something's very different about Canada and the US.

You guys are all talking about liability coverage well under the minimum permissible by law here in Canada.  Moldy's online calculator though won't go above $500k, while CC and I are carrying multi-million liability.  And finally I specifically remember that upping the liability amount above a million really didn't cost all that much.

Of course. The US is an outlier on all this stuff. It is why US citizens are sometimes excluded from international policies, and international policies often apply everywhere but the US.

But the US is widely acknowledged to be the most litigious place in the western world - so why wouldn't you guys carry more liability insurance?

[DontSayBanana]

I pay about $1100 a year for a $15k/$30k state minimum policy, thanks to a crappy driving record from when I was a kid.  It's been over 6 years since the last incident, so yeah, at least in NJ, that stuff does follow you around.

[Baron von Schtinkenbutt]

But the US is widely acknowledged to be the most litigious place in the western world - so why wouldn't you guys carry more liability insurance?

In a perverse, ironic twist, the more insurance you have, the bigger a target you are, thus increasing your litigation risk.  From a NY Times article on umbrella policies:

The consensus among financial advisers is that coverage on personal liability insurance should roughly equal a policyholder's net worth. It is possible that someone will be sued for more than that figure, but in their experience it is unusual.

Up to that amount, the policy pays off; substantially more than that and the policyholder on the wrong end of a court judgment is likely to file for bankruptcy and the plaintiff will have to stand in line with other creditors, advisers say.

[Admiral Yi]

I pay about $1100 a year for a $15k/$30k state minimum policy, thanks to a crappy driving record from when I was a kid.  It's been over 6 years since the last incident, so yeah, at least in NJ, that stuff does follow you around.

I thought Jersey had instituted some kind of crazy insurance law (by referendum of course) a while back (20 years?) that made it illegal to charge higher premiums for bad driving.

[Admiral Yi]

But the US is widely acknowledged to be the most litigious place in the western world - so why wouldn't you guys carry more liability insurance?

The natural question to me is the reverse: why are Canadians required to carry far more insurance than they can ever reasonably expect to need?

[DGuller]

I pay about $1100 a year for a $15k/$30k state minimum policy, thanks to a crappy driving record from when I was a kid.  It's been over 6 years since the last incident, so yeah, at least in NJ, that stuff does follow you around.

I thought Jersey had instituted some kind of crazy insurance law (by referendum of course) a while back (20 years?) that made it illegal to charge higher premiums for bad driving.

That is definitely not the case.  The only thing that remotely comes close is that your first 2-point speeding ticket cannot affect your insurance.

[crazy canuck]

But the US is widely acknowledged to be the most litigious place in the western world - so why wouldn't you guys carry more liability insurance?

The natural question to me is the reverse: why are Canadians required to carry far more insurance than they can ever reasonably expect to need?

Depends on what you think is reasonable.  I prefer not to be bankrupted by a moment of stupidity. Although I have not had an accident in about 30 years I am pretty sure it is still possible for me to cause an accident - that is why we call them accidents.

[Admiral Yi]

That is definitely not the case.  The only thing that remotely comes close is that your first 2-point speeding ticket cannot affect your insurance.

I think it might have been repealed.

[OttoVonBismarck]

Something's very different about Canada and the US.

You guys are all talking about liability coverage well under the minimum permissible by law here in Canada.  Moldy's online calculator though won't go above $500k, while CC and I are carrying multi-million liability.  And finally I specifically remember that upping the liability amount above a million really didn't cost all that much.

Yeah, there is obviously some difference here. In the U.S. there is State mandated liability minimums, usually they are very low. Some States are as low as $25k/50/25 or something ($25k per injured person, $50k per accident maximum, and $25k property damage)--which is very low for even run of the mill accidents. But often times parties settle for the maximum liability amount since most people that carry minimum coverage can't afford much more and have little else to go after once the policy is eaten up.

I have a $250/$500/$100 policy ($250k/person, $500k/max on personal injury per accident, and $100k max on property) which is as high as my insurer (Progressive) offered when I self-serviced on their website. My homeowner's also only has $300k in liability on it, and I think if I wanted higher I'd need to go request a special plan from my agent or go with a different insurer.

I do have umbrella insurance though which we try to keep a bit above our net worth, which is priced similarly to adding extra liability insurance to your auto policy seems to be in Canada. With my insurer you can buy umbrella insurance in $1m increments for fairly low increases in premium.

[Ed Anger]

I got enough.

[Ideologue]

I have SC's minimum coverage.

It is not $200k.  If someone has been inflicted with $2 million in damages, probably best the paramedics snap their necks as painlessly as possible.

Lost wages is what can render liability through the roof.  If you can convince a judge that you're unable to work as a result of an accident, then you're good for their salary for the next 20+ years.  That can easily exceed a mil.

And by the way, I've got an old friend who, if he had been hit by another driver, instead of a moose, would have received a multi-million settlement since he became a quadriplegic.  He would very much disagree with your opinion.  (and he was a big, big fan of Manitoba's no-fault auto accident plan for that very reason)

Well, I'm not thrilled that this has a personal dimension for you, so I won't discuss it and risk making you mad over our difference in beliefs.  In any event, I am sorry about your friend.

[MadImmortalMan]

When walking the streets of Canada, remember all the drivers have a million in coverage. Be careful, but not too careful. 

[Grey Fox]

But the US is widely acknowledged to be the most litigious place in the western world - so why wouldn't you guys carry more liability insurance?

The natural question to me is the reverse: why are Canadians required to carry far more insurance than they can ever reasonably expect to need?

We are not required, the market just moved that way. In Quebec, for example, we have an highly competitive insurance market, yet we have pure no fault system. My 1 million $ liability is only for property damage, I can't be sued for personal/bodily injuries or lost of incomes.