Auto Insurance coverage -- How much Liability and Medical?

[Melanie n]

I got a couple of questions about about car insurance coverage. Namely, what's the best amount of liability and medical coverage to select. 1) For the liability, I know it's wise to get the best liability that one can afford to cover your assets. But how about if one also gets umbrella coverage. For example, if one gets an umbrella coverage at a $2 million limit and the liability limit for the car insuarance is $300,000 or $500,000, does it make sense to select the $500,000 or is it better to select the $300,000 limit since the umbrella coverage would kick in? 2) for medical, is this redundant coverage and not needed because would not the liability portion also cover medical expenses? Or is it wise to get this, for example, if a passenger is not insured (no health insurance), so the medical part would help out in that case?

 

[butch]

medical applies to those in your car

liabilty applies to the other car

 

[mamatohaley+1]

Typically in order for you to get an umbrella policy you have to get the maximum liability amounts.

Medical is not redundant for several reasons. Medical pays for your medical bills and sometimes your passenger (depending on coverage and state laws) as you are treating. It would not pay for people in other vehicles. Liability covers an injured person in a wreck if you were at fault but the bills will not be paid until completion of the claim. So lets say you were in a wreck and were not at fault, you would not use the other person's liability coverage until you are ready to settle your claim. You would use your medical coverage.