Question 1

What does this analyzer actually compute?

Accepted Answer

Seven gap categories: BI per-person liability, BI per-accident, property damage, uninsured/underinsured motorist (UM/UIM), comprehensive + collision drop-decision (per primary vehicle), umbrella underlying-limit prerequisites, and medical payments. Each is flagged green / yellow / red against operator-grade benchmarks scaled to net-worth tier. Output is a prioritized remediation plan with estimated annual premium impact.

Question 2

Why don't you look up state minimums?

Accepted Answer

Two reasons. First, state minimums are almost universally inadequate — average serious-accident bodily-injury claims meaningfully exceed every state's minimum, and minimums leave the at-fault driver personally liable for the gap. Second, this calculator is a gap analyzer against operator-grade benchmarks, not a state-minimum lookup. Being legal is the floor; the right number is whatever protects your assets in a worst-case claim. Verify your state's minimums separately with your state DOI.

Question 3

How is the operator-grade BI benchmark set?

Accepted Answer

By net-worth tier, scaled up by risk factors. Under $100K net worth: 100/300 (per-person/per-accident). $100K-$500K: 250/500. $500K-$1M: 250/500 + umbrella prep. $1M-$5M: 500/500 + $1M-$3M umbrella. $5M+: 500/500 + $5M+ umbrella. Risk factors (teen driver, long commute) bump the tier up by one. Carriers cap most policies at 500/500 BI; above that, the umbrella does the work.

Question 4

Why does UM/UIM matter so much?

Accepted Answer

UM/UIM is what pays YOUR medical and bodily-injury claims when the at-fault party is uninsured or carries inadequate limits. Per Insurance Research Council estimates, roughly 1 in 8 drivers nationally is uninsured (varies meaningfully by state). The premium delta to match underlying BI per-accident is typically $50-$120/year, which is one of the highest-leverage spends on the policy.

Question 5

When should I drop collision coverage?

Accepted Answer

Standard rule: when the annual collision premium exceeds 10% of the vehicle's actual cash value (ACV), drop collision and self-insure. Between 5-10% is borderline; below 5% is keep. Comprehensive (theft, glass, weather) is typically cheaper than collision and worth keeping longer — the cutoff for comprehensive is when ACV falls below ~$1,500 and the deductible would consume most claim payouts.

Question 6

What are umbrella underlying-limit prerequisites?

Accepted Answer

Most umbrella carriers require minimum underlying limits before binding the umbrella: typically auto BI per-accident ≥ $500K, auto PD ≥ $250K, homeowners liability ≥ $500K. For higher umbrellas ($5M+), 500/500/500 auto + $500K homeowners is typical. If underlying is below the carrier's prerequisite, the umbrella may be non-renewed or excess-of-underlying gaps may apply on a claim — the underlying ALWAYS pays first.

Question 7

Is medical payments (Med Pay) the same as Personal Injury Protection (PIP)?

Accepted Answer

No-fault states use PIP instead of Med Pay; PIP is broader (covers lost wages and other expenses, not just medical). Med Pay covers medical costs only, on a no-fault basis, for you and passengers regardless of who caused the accident. Both are inexpensive ($30-60/year) and add a useful first-dollar line. If your state uses PIP and you're seeing Med Pay on the policy form, ask your agent which applies in your state.

Question 8

How accurate are the premium-impact estimates?

Accepted Answer

Approximate. The estimates use industry midpoint figures: ~$25 per $100K of additional BI, ~$15 per $100K of additional PD, ~$20 per $100K of additional UM/UIM. Actual cost varies by carrier, state, driving record, credit-based insurance score, and household risk factors. Use the estimates to prioritize gaps; verify exact pricing with your carrier or a comparison-shop tool.

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