Do I need extra car liability insurance?
I am a Canadian senior who drives less than 100 kilometers a week.
I have $1million liability but my insurance is up for renewal and they say I should have $2 million liability. It will cost me an extra $65 a year.
I've never had an accident.
My vehicle is a 2009 Pontiac Vibe AWD.
What do you think ?
Thank you for any advice
- Obi Wan KnievelLv 78 years agoFavorite Answer
Honestly, I wouldn't worry about it.
I did auto insurance for 15 years, and we recommended $2 mil liability too. But I still have one million on my policy and I can still get to sleep at night.
Here's the deal with your policy right now. You'd have to be responsible for an accident where there are heavy injuries (or death) before it would even be a possible issue. Then you'd have to be sued in court for more than $1 million. Then the judge would have to award the plaintiff(s) that much. Your current policy would cover a million (plus the legal costs), and you would then be solely responsible to pay the rest. That COULD happen, possibly, but it's unlikely.
You, in fact, are one of the least likely people in Canada to ever face that scenario. It might happen, maybe even tomorrow because you never know, but it's not very probable. If having the increase will give you peace of mind, however, it might be well worth the extra sixty-five bucks a year. The whole idea of insurance is what if and just in case, so ask yourself what if and make your decision from there.
NOTE: 95% of the people I offered that increase to said no, myself included. Not trying to influence your decision, just sayin' is all. Because it is your decision.