> Right now we own all three of our vehicles, no loans. Two are worth about $25k and the other is worth maybe $5k. Do I really need liability for $300k?

The value of your cars doesn’t matter for liability.

If you cause $300k in property damage, do you want to be responsible for a portion of it?

For hazard insurance, the replacement cost is a good number.

For liability insurance, however much you’d get sued for that was necessitate bankruptcy

I have maximum car liability insurance plus a $1mm umbrella policy.

Whether you carry collision or comprehensive is a measure of your own risk tolerance, risky behavior, and capacity to replace. There's no formula for it. You can pencil it out. As an example, if you have a car worth 5k and a 1000 deductible, you'll get 4000 in value out of your insurance should you total your own car. Over 4 years, that comes out to $80/month. So if you feel you are unlikely to total your car in the next 4 years and your insurance is $80/month for collision, you're better off dropping it. This is a moving target, though - how many cars have you totaled? How many more and how soon do you think you'll total them? Nobody really knows except you, and even then you don't really know that well.

As far as liability limits, that really depends on what you're likely to hit. I carry high limits on mine because I live in a neighborhood where G-Wagens and Teslas are rampant.

I've never filed an auto or home insurance claim in my life, though. Insurance should cover catastrophes, IMO, and anything short of that I expect to come out of my own pocket.

Do you know what the umbrella policy does? Like when would that get used?

> Do you know what the umbrella policy does? Like when would that get used?

It pays for most civil liability (above and beyond what my home and auto policies cover)

Average new car sold price is around 50k. If you going into multiple cars accident, you'll want that $300k coverage.

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I do sales and service for an insurance agency. Our agency recommends a minimum of 100/300/100 for liability coverage. If you like in an area where luxury cars are regularly around you and dense population, definitely do it. As far as deductibles, for collision ask yourself “how much out of pocket cost can I cover before it becomes a burden”. For cars over 10-15 years old the savings in dropping collision coverage is typically higher than having collision coverage on the vehicle. If your glass coverage is included in your comprehensive coverage, select a deductible of $50. Glass repairs are typically $200-$375, I’ve never seen a glass claim over $550.