Explain your answer. What would you recommend as a minimum amount of coverage for third party liability coverage? Should Nikita maintain her section C coverage? When should she consider reducing or cancelling this part of her policy?

Nikita Stewart recently graduated from college with a degree in forestry management. She has a promising career ahead of her. Already her employer has offered to pay for graduate school, and in the past two years she has been promoted three times. Two years ago she purchased a townhouse for $130 000; today her townhouse is valued at more than $160 000. Last year, Nikita purchased a new Toyota Rav4. She loves the feeling of quality that she associates with the vehicle. She also loves the creature comforts offered by such a reasonably priced vehicle when she makes her 45-kilometre round trip commute. Overall, Nikita feels economically secure. When she last checked, she had more than $35 000 in savings and a growing retirement plan. On her drive home from work last night she heard a report on the radio of a person who lost everything when he caused an auto collision and found out that he was underinsured. Nikita certainly does not want this to happen to her. Help her think through the following questions and issues. After reviewing her personal automobile policy Nikita noted that she had $200 000 in third party liability coverage, $50 000 in accident benefits, and collision and comprehensive coverage. Is Nikita adequately insured?