My auto insurance policy is up for renewal soon, and I want to make sure I have the right amount of liability insurance.
Currently we (my husband and I) have liability coverage for $100,000 per person/$300,000 per incident. A general rule of thumb according to several sites, like this one, is:
Make sure you’re covered for an amount equal to the total value of your assets (Add up the dollar values of your house, your car, savings and investments).
When I add up our total assets (savings plus the equity in our house) I get about $110,000. If I include retirement savings that goes up to $150,000. That puts me right above the $100,000 per person limit but well below $300,000 per incident limit.
Is a $100,000/$300,000 policy adequate coverage or should we be bump up to the next coverage level ($250,000/$500,000)?