Optimal Car Insurance Limits

[louis_redfoot]

@cashmeeousside

What

pm sent, no need to clutter the forum

[Honkinggoose]

@louis_redfoot

dude, i don’t wanna lie though lol

Then what do you call:

@louis_redfoot

most of my assets are either offshore, unlisted, or in my mom’s name

you won’t get to my money.

[cashmeeousside]

He went full blown crazy over PM with me

[Honkinggoose]

Not sure if they’ve developed an ignore button yet, and hate to even think about needing one, but Carnac has foreseen it.

[louis_redfoot]

protection

[louis_redfoot]

no i didn’t. cut it out with the personal attacks. you don’t wanna hear from me? stop the mockery and disrespect. perhaps i’m proud of my accomplishments, but i’m not insecure enough to feel the need to mock others.

the truly rich don’t waste hours grinding out an extra 20 bucks. it’s just money.

[gwraigty]

@louis_redfoot

most of my assets are either offshore, unlisted, or in my mom’s name

Generally, it’s not a good idea to keep assets in someone else’s name. If that person get’s sued, then your assets are gone.

[Shandril]

@TripleB

Thus, for me to break even on $1600 in insurance premiums over 10 years, the cost of the BK would need to be $160k. I doubt declaring BK will cost $160k and therefore mathematically speaking, I’m better off at minimum coverage rates.

This is why there’s not really a definite answer since it depends primarily on two things that are unique to each driver:

1. their chance of getting into an at-fault accident that causes more than $20k liability.

2. the amount of seizable assets they have.

Those define the probability of a loss and how much is potentially at risk in case of such loss. The amount of seizable assets for many people is considerable. If you have an emergency fund, investments not locked into retirement accounts, garnishable income, etc… the break even point then requires a much lower probability of having the at-fault major accident.

And vice versa, if you have little seizable assets, that probability does not need to be ultra low to break even. Taking a step further, if you’re ultra confident in your low probability to have any kind of at-fault accident, then you should also consider self-insurance. That does require you to prove some level of seizable assets but then you further increase your savings by not having any premiums at all.