• Home
  • Get A Quote
  • Customer Service
  • Refer a Friend
  • About Us
  • Location Map
  • Employee Directory
  • Privacy Policy
  • Contact Us
 
CALL US AT 352.332.0180
Home
  • Home
  • Get A Quote
  • Customer Service
  • What We Offer
    • Auto Insurance
    • Business Insurance
    • Commercial Auto Insurance
    • Contractors Insurance
    • Home Insurance
    • Renters Insurance
    • Boat | Motorcycle | RV
  • Blog
  • Resources
    • Secure File Area
    • Refer a Friend
    • Important Links
    • Insurance Glossary
  • About Us
    • About Us
    • Location Map
    • Privacy Policy
  • Contact
    • Contact Us
    • Join Our Newsletter
Auto Insurance PERSONAL AUTO
Auto Insurance COMMERCIAL AUTO
Homeowners Insurance HOME
Business Insurance BUSINESS
Toy Insurance TOYS
Contractors Insurance CONTRACTORS
Home > Blog > Losing Everything Due to Inadequate Auto Liability Coverage
FRIDAY, NOVEMBER 20, 2020

Losing Everything Due to Inadequate Auto Liability Coverage

Losing Everything Due to Inadequate Auto Liability Coverage

All states set minimum coverage levels for drivers, but if you are involved in a serious accident, minimal coverage may not get you off the hook for the full extent of damages. 

Your state's goal is to make the required insurance affordable, but in many cases the established minimum coverage is not adequate to cover the liability costs if you are found to be at fault in a costly accident.

Even limits that are several tiers above the minimum may not be adequate for some drivers, because once those limits are exhausted, any remaining damages must be paid out of pocket.

This is important to consider as the cost of automobile claims has been rising rapidly during the past 10 years for a few reasons:

  • More distracted driving has caused in increase in deadly accidents.
  • The cost of medical care to treat injured people has skyrocketed.
  • Modern vehicles have loads of expensive technology, which if damaged, is costly to replace or repair.

 

Bankruptcy is the first thought that comes to mind for people trying to avoid paying excess damages, but bankruptcy does not come without problems. It will probably hurt or even eliminate your chances of getting credit in the future; even if credit can be obtained, it will cost you a lot more and come with conditions.

Because the costs and lost opportunities that result from bankruptcy are significant, it's not an option most people want to or should choose. For that reason, let's instead look at your obligations and how to minimize your risk of having to pay for damages that could be covered by higher liability limits.

Consider the following example: You have an auto policy with a liability limit of $100,000. One afternoon, your cars brakes fail and you rear-end the car in front of you with very high impact, paralyzing the driver.

Once your limit has been paid by the insurance company, it becomes your obligation to pay for any further damages. In the example above, if the injured party is justified in asking for $3 million, your insurance company would pay the $100,000 for which you are covered, and you would then be expected to pay the remaining $2.9 million.

Alternatively, the injured party could take you to court, which could easily cost you hundreds of thousands in legal fees in addition to any judgment granted to the plaintiff. Even if you file bankruptcy at that point, if you have assets, you would have to pay what you have and possibly lose everything. Your wages also may be garnished to pay any judgment. 

In any case, not having adequate liability, let alone minimum limits set by the state, is not really a solution.

 

What you can do

The smart choice is to opt for an auto policy with higher limits. Premiums in most cases are not significantly more for higher liability limits. Another option is an umbrella policy, which is available in increments of a million dollars that would cover liability for all the vehicles in your household for one low premium.

With such options available, why risk damaging your future with a bankruptcy or, worse yet, losing everything you own because you did not plan in advance to set up coverages that would protect you?  

It doesn't cost you anything to discuss the options with us. We can walk you through the various options for increasing your auto policy's liability or secure an umbrella policy that would cover your entire household as well as other non-auto related liability claims, such as someone injuring themselves at your home.

Thank you for visiting the Partners Insurance Agency blog. We hope you found our content helpful and informative.

Posted 9:42 PM

Tags: inadequate insurance, insurance coverage
Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2021
  • 2020
  • 2019
  • 2018
  • 2017
  • 2016

  • insurance(99)
  • homeowners insurance(44)
  • auto insurance(40)
  • business insurance(29)
  • home insurance(11)
  • boat insurance(8)
  • workers compensation(8)
  • insurance claims(8)
  • liability insurance(7)
  • flood insurance(6)
  • liability(5)
  • additional insured(5)
  • commercial liability insurance(4)
  • d&o insurance(4)
  • umbrella insurance(4)
  • hurricane preparedness(4)
  • commercial auto insurance(4)
  • renters insurance(4)
  • insurance discounts(4)
  • teen drivers(3)
  • vacation rental insurance(3)
  • business owners policy(3)
  • tria(3)
  • small business insurance(3)
  • insurance coverage(3)
  • water damage(3)
  • summer safety(3)
  • workplace safety(3)
  • commercial insurance(3)
  • commerical insurance(3)
  • covid-19(3)
  • uber(2)
  • non-owned auto insurance(2)
  • drunk driving(2)
  • employee fraud(2)
  • terrorism risk insurance(2)
  • business owners insurance(2)
  • insurance liability(2)
  • freezing pipes(2)
  • halloween safety(2)
  • auto accident scams(2)
  • holiday safety(2)
  • natural disasters(2)
  • contractors(2)
  • moving(2)
  • dog liability insurance(2)
  • forced-placed insurance(2)
  • claims process(2)
  • buisiness insurance(2)
  • general liability(2)

View Mobile Version
Facebook
Twitter
LinkedIn
Carriers
logo, company name
text, logo
Carriers
logo
icon
logo, company name
PIA

Resources

Home About Us Get a Quote Customer Service Contact Us
a drawing of a face

Contact Us

icon
  • 4040 W Newberry Road Suite 950
  • Gainesville, FL 32607
  • Office: 352.332.0180
  • Fax: 352.378.5820
© Copyright. All rights reserved.
Powered by Insurance Website Builder