Question about auto insurance LIMITS

[Shari]

I plan to change insurance companies in order to have all the policies in one carrier instead of all over the place, so I've been getting quotes.

Some companies have remarked it is strange that I currently have auto 250/500/250 - with the "strange" coming in on the last number. They claim I need less for property damage.

Can someone tell me why the last number "should" be lower? Any other thoughts on what limits I "should" have?

I actually thought I somewhat understood insurance until today. :)

[sweetana3]

I dont know the real answer but property usually has a fixed and easily identified value. Book value, appraisal value, etc. Human life and limb and pain issues that form liability are always difficult to set a price "unlimited" liability.

[herisf]

Maybe you're over the minimum for your state? I know each state has different minimums that you *must* meet. You can, of course, exceed them.

[jp1]

They probably think it's odd since you'd have to have a really serious multi-car accident to cause that much property damage. If you want to carry that much insurance it would probably make sense to ask for a combined single limit of $750k.

[rosarugosa]

I know that in Massachusetts, the compulsory PD limit is $5000. That's probably too low (we carry $100,000), but $250,000 certainly sounds on the high side to me.

[Shari]

Hmm, thanks guys. I don't remember any logic to choosing this limit (possibly the agent suggested it at the time). It's hard to know what to choose!

[Tenngal]

each state has a minimum amt you need to carry. Check out your state and see what the least amt is......this seems high too me.