And the liability premiums aren’t linear. Most claims are for the smaller amounts, not common to have multi-million dollar claims (though it does happen), so that fifth million of coverage is cheap.
The thing is, say I get sued for $100m. It’s great for my victims that I paid extra all these years for $5m in coverage, but I’m going bankrupt either way.
Indeed collision on an older vehicle often doesn’t make sense. And could result in your vehicle prematurely salvaged.
Not really - if you’re involved in a bad auto accident you are going to be sued - ending up with a large judgement against you (because your insurance only covered $300k of a $1m judgement still leaves you on the hook for $700k) is a horrible outcome, rich or poor.
You want liability protection such that your assets (whether small or large) are unlikely to be impacted by a reasonably foreseeable outcome I.e. $300k of liability covers 55% of likely outcomes vs $3m covering 85%
Agreed - I wish I had better data but it just feels like a low seven figure outcome could realistically be the outcome of many serious traffic accidents I’m solving for a 3rd standard deviation event but only having a couple hundred thousand of coverage feels like your solving for the lowest 1-2 quartile of outcomes.
The thing is, say I get sued for $100m. It’s great for my victims that I paid extra all these years for $5m in coverage, but I’m going bankrupt either way.
Indeed collision on an older vehicle often doesn’t make sense. And could result in your vehicle prematurely salvaged.