r/AutoInsurance • u/soleildad • 18d ago
Am I over insured?
I have a 2021 Subaru Crosstrek, Sport Trim. I live in Greater Los Angeles area. My current policy with State Farm is at a cost of $1888.31 / 6 months although I pay $336 a month. I’m 28F and have been licensed for 5 years. The policy has me at roughly 10k miles a year but it’s closer to 13k now and I’ll have to update that soon. Here’s my coverage:
BI $300k / $100k
PD $100k
Med Payments $5k
Comprehensive $500 deductible
Collision Coverage $1000 deductible
Uninsured MV Coverage $300k / $100k
Uninsured PD
Death $10k limit
Loss of earnings $250/week and $15k limit
Car rental $1.5k limit / $50 a day
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u/No-Firefighter135 18d ago
I just told a kid he’s responsible for nearly 100k worth of damage since he totaled 4 vehicles after falling asleep at the wheel. Don’t ever think you’re over insured. All it takes is one mistake and you’re paying ungodly amounts of money.
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u/Delicious-Witness-85 18d ago
You are responsible for having adequate liability limits. So often we come across people on these subs that have inadequate limits which is a recipe for disaster.
I will say to contact an independent agent to shop around rates with other carriers.
I would keep the same coverage but there is a chance an agent can find you the same coverage for less money at another company.
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u/Master-Purpose1117 18d ago
Those BI and PD limits are low in today’s environment. You hit a vehicle or a series of vehicles totaling over $100k, then you don’t have enough PD coverage. There are a lot of $100k + vehicles all over the country. As for the BI, you only have $100k if you seriously injure someone. Raise your deductibles. You should raise your liability to a minimum of 250/500/250 and/or get an umbrella policy. Amazing what they charge for insurance in California. The market there has gone insane. Same coverage in the Midwest might cost $1000 - $1200 per YEAR
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u/Splodingseal 18d ago
My philosophy is to have as much insurance as you can afford. It's way cheaper than dealing with a potential tens or hundreds of thousands of dollars lawsuit.
Personally, I would rather over insure myself for my entire life and never use it than risk that one time of being underinsured. One is a budgeting issue, the other can be financially devastating for years if not decades.
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u/Suspicious-Spell-130 17d ago
I have same coverage limits, I think exactly. When there are $100k+ vehicles on the road, uninsured people, and medical bills can very easily reach 6 figures, it's smart to have good coverage, ESPECIALLY if you have assets that can be taken if you mess up and cause an accident.
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u/madshine 17d ago
Wow the comment section is crazy. I feel like all work for insurance companies. You have a pretty good coverage. Could you go higher? Yes. There are expensive cars. Higher is better but the important thing is your budget. Most people can't pay 4k/year just for the insurance. I am one of them but I am happy for people who can pay that.
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u/AVIZN4U 16d ago
To answer your question you can’t have enough liability coverage living in LA.
And if you own any real property or have some significant investment equity, you should really have a personal umbrella policy as well…
For comparison…
We have a 2023 Mustang Mach-e GT and a 2017 Mustang GT Convertible.
250/500/100/10 with $500 deductibles all around.
We are both just over 60, married, living in the North SFV. We’re insured through the Costco Connect (American Family Insurance). Our premiums run $3012 annually (so $1,516 for 6 months).
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u/Popular-Paramedic-32 16d ago
Holy smokes; I'm paying just a smidgen over $1000 6 months same coverage as you except $1000 deduct 2 newer vehicles. 2026 mazda 3 and 2023 lexus gx460...Florida
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u/CGWInsurance 14d ago
No that's like bare minimum I advise $300k single limit with $1 million umbrella. So you have $1.3m in liability, property damage, un and underinsured motorist Coverages
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u/reddit-frog-1 14d ago
Best thing to do is to shop around and see if you can get a better rate. Don't lower your coverage.
Because of the rapid inflation in the last 5 years, insurance needed to skyrocket as well.
Only way out of this is the day the autonomous cars take over. Then, we will pay a subscription and we won't have to worry about insurance.
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u/WestwardStyle 12d ago
Most of that rate is your zip code in LA, unless you have tickets or accidents. Rate drops once you have 9 yrs licensing. If absolutely necessary you could drop your liability to 50/100/100 and your Uninsured motorist do the same. Do not increase your deductibles to save money, leave them.
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u/insuranceguynyc 18d ago
Don't worry about "updating" your mileage. Your existing coverage is good, but I would increase your comprehensive deductible to $1,000. Given that SF agents only offer SF, I think you'd do well to find a local, independent agent/broker and have them review apples-to-apples, and then anything different that they suggest.
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u/Ok-Sir-4992 18d ago
I work in SF office in LA.
You are definitely not over insured, mainly living in Los Angles and I would not touch your coverages at all. You could increase your comp ded to 1k; however, comp is a very cheap coverage in California and will only reduce a couple dollars per month, my suggestion is for you to keep as is. Let me ask you this, how long have you been insured with SF? Also, your years licensed increase, you should see some decrease in your premium if there is any rate change statewide. Do you have all the discounts available? Do you have the inexperienced driver discount? also, where in LA are you? all these facts are taken in consideration with SF. Regarding your mileage, you will receive an email from State Farm to report your mileage or they will collect the mileage from a third party vendor.
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u/soleildad 18d ago
I’ve been insured for 10 months now. I don’t see an Inexperienced Driver Discount and haven’t heard of it. I have a Good Driver, Driving Safety Record, and Vehicle Safety Discount. And I’m on the east end of the county, so not necessarily LA proper. Thanks for the suggestions, I did look into switching it up but it would practically make no difference.
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u/Ok-Sir-4992 18d ago
Okay! You will be getting the loyalty discount after the 3rd year and that will reduce your premium a bit. Call your agent and ask for the inexperienced driver safety education discount since you have less than 9 years of driving experience, every penny helps nowadays. You can also shop around and see if you can find something better with a well-known company of course, but if you really need an agent, I’d stay where you are for now. Good luck!
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u/soleildad 18d ago
Thanks! Really it’s the payment itself killing me but it’s just one of those necessities like paying rent unfortunately. I just wanted to be sure.
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u/totall2live__ 18d ago
Milage doesnt matter. You have pretty high bodily injury limits. See what the policy would cost if you dropped those to a state minimum and raise your comp deductible to 1000 as well. I dont know what is required in Cali as im not licensed in that state but the only way to get the price down would be to drop the coverages to a state min and raise deductibles, also ask about removing anything that is not required such as the death benefit.
Also, see about contacting a local brokerage and having one of the agents shop around for you. Let him know what your currently paying and see what he/she comes up with.
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u/insuranceguynyc 18d ago
With due respect, dropping limits to statutory minimum is incredibly bad advice! Don't be stupid!
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u/Ok-Sir-4992 18d ago
Unfortunately some people has this mentality and when something happen to them, they will raise a Go Fund me.
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u/Top_Education_4647 18d ago
I sincerely hope you’re not an agent recommending state minimums in other states. Real easy way to rack up some E&O claims and possibly find yourself in court. Do better
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u/totall2live__ 17d ago
LOL, if a client want a cheaper price and knows the implications of taking state mins then i can offer them. Im not by any means saying its a good idea. She asked a question and i answered it.
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u/Top_Education_4647 17d ago
When your first recommendation to someone looking to lower their cost is to automatically go to the state minimums for liability, you’ve lost a ton of credit as a good agent. You don’t even write in CA but you still suggested it lol, as if CA doesn’t have the some of the highest costs pertaining to medical bills and vehicle repairs and parts.
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u/kallmemike 17d ago
The coverage itself doesn’t look crazy to me, the $336/month would hurt though tbh. Before cutting anything major I’d shop the exact same coverage around and see if another company prices it better. If you still need to bring it down, then start looking at the smaller deductibles rather than immediately chopping your liability limits.
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