Your Auto Insurance…

This post was originally published on November 16, 2016
The latest update to this post was made 7 years ago.

Your Auto Insurance…

Know THIS about your auto insurance…  There is a Great possibility that YOU can do great harm in your fiscal being.

Here is a true story, a very true story.  And no I am not going to tell you the name of the person this happened to because that person I see every day and I just don’t need the grief.    Here is hint number one. Don’t take my word for it call your agent and ask him/her.  When you purchase insurance in most cases it goes something like this.

You:  How fast can I get my Insurance I.D. Card and get on the road?  You may purchase your coverage from the Web, you may even purchase your coverage from a local agency, yet the game will remain the same.  You will have limits. When a person purchases the least expensive coverage to achieve the goal of I.D. card equates to Paper Police Repellent you may be surprised at what did not happen. You may be exposed to a fiscal reality.  Here is how this is broken down…

So, you are out on a sunny day, what could go wrong?  Yet somehow you are involved in an accident. As odd as it may seem you were negligent.  Meaning you were at fault.  (I know this could never happen to you or I, but keep reading to see what happens to the other guy.)  Again if you purchased the state minimum then you might think that you are legal and in the clear in case of an accident. You would be right and wrong.

Lets just say in our make believe story that will always happen to the other guy, there is an ambulance involved.     At this point you might want to think about money. Let’s say that the limit for your accident is 50K (yes that is a number that I picked straight out of the air)  Now, the car that was hit was totaled. The value of the car was $ 25,000 and the person that was hurt was  $50,000.  Looks like someone is fifty thousand short.  Why worry? You paid the for what the state mandated…..right? Again call your agent.  And ask this question:

“If a person is in an accident and their limits on their auto insurance are exhausted then what happens to the balance?  What happens with the amount that was not paid by the Insurance carrier?  You know the….  Other fifty thousand dollars.”  Well, you can be held responsible. Meaning you might get a bill, it is not impossible you get a letter or call from someone wanting their money.  Now, all this is something that you will want to go over with your agent. You may want to ask.. is it true that after my insurance limits that *the client/you* are all used up then, could YOU become responsible?

Tags: #insurance #autopolicy #autoinsurance #responsible #agent #accident #story #true