The magazine Money last month reported that $1.2 million is the average verdict in personal injury suits.
I think the average personal injury verdict is less than $1 million. Even so, this is an incredibly misleading number because this includes very large verdicts, many of which are not collectible because of financial limitation of the defendant or because of caps on damages.
Still, the advice offered in the article is good advice:
Adding umbrella insurance to your homeowners and auto policies coverage that shields you from out-size medical and property-damage bills and legal judgments that result from accidents on your property or in your car provides some protection. And it’s relatively cheap: $150 to $300 a year for a $1 million policy, plus around $75 for each extra $1 million of coverage. (We’re stepping up to $4 million to be safe).
The cost of umbrella insurance is cheap in proportion to the peace of mind it affords its insured. Probably the only issue on which insurance companies and our accident lawyers agree.