Insurance and cost effective should not be said in the same sentence. But yes it's more cost effective if something really bad happens. otherwise it's throwing away more money.
You need the maximum coverage to qualify for an umbrella policy. My limits are 250/500/100 and I have a $2M umbrella coverage that costs about $250 a year.
Open Table is 100% right. You need enough coverage to cover your current and future assets (that can be estimated based on your current salary).
If you ever get into a bad accident, the injured party can easily sue you and get a judgement that you may have to pay the rest of your life.
I rear-ended a pregnant woman. She was fine, the baby was born healthy many months after. The demand from her layer was for $110K. (Not sure how much the insurance will be paying out...but imagine if the woman and baby were not fine.)
You don’t want your insurance to be vastly lower then your TC. If they find where you work and assume your TC they will sue you for the difference and you’ll be able to pay.
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If you ever get into a bad accident, the injured party can easily sue you and get a judgement that you may have to pay the rest of your life.
I rear-ended a pregnant woman. She was fine, the baby was born healthy many months after. The demand from her layer was for $110K. (Not sure how much the insurance will be paying out...but imagine if the woman and baby were not fine.)