Insurance Question : Car collision...
Jan 26th, 2011 | 10:25 PM
#1
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Insurance Question : Car collision...
Our policy came up for renewal recently and I noticed that we are going only with a 15/30/10 liability ( the bare minimum for AZ). My friend recently got into a collision which was her fault and her bill was more than the coverage amount so she had to shell out almost $5000 from her own pocket. Its not been easy for her. I was thinking, should I go with higher liabilities ? what amounts do you keep/recommend?
Jan 27th, 2011 | 03:39 AM
#2
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The liability part protects your other assets - while not familiar with AZ law, these amounts seem rather low. Easy to do much more damage than that with a car.
Also, consider an "umbrella" policy - this covers you above the limits on all your insurances (home, renter, auto) - usually up to $1-2 million. And usually costs $100 or so a year. This covers such things as if a person slips on a banana peel in your kitchen, skips on ice outside your house, etc.
Also, consider an "umbrella" policy - this covers you above the limits on all your insurances (home, renter, auto) - usually up to $1-2 million. And usually costs $100 or so a year. This covers such things as if a person slips on a banana peel in your kitchen, skips on ice outside your house, etc.
Jan 27th, 2011 | 04:08 AM
#4
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As gail noted it all depends on what other assets or income you wish to protect.
If currently have neither, and don't project acquiring any then you may be judgment proof. The more you have the more you stand to lose.
We maintain an umbrella policy also - your insurance agent can give you advice.
If currently have neither, and don't project acquiring any then you may be judgment proof. The more you have the more you stand to lose.
We maintain an umbrella policy also - your insurance agent can give you advice.
Jan 27th, 2011 | 08:34 AM
#6
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It al boils down to how much can afford to pay out if you are found liable for injuries or property damage as the result of an accident. Nowadays any injury that requires hospitalization can cost tens of thousands of dollars. If you are found liable and don't have enough insurance you'll have to come up with the money from some other source.
The minimum coverage required by your state is just that, the minimum. Most prudent people carry more. Tally up your assets and purchase enough insurance to protect them.
The minimum coverage required by your state is just that, the minimum. Most prudent people carry more. Tally up your assets and purchase enough insurance to protect them.
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Jan 27th, 2011 | 10:13 AM
#9
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I'd be afraid to drive around with that!! 1st two numbers are bodily injury if you caused the accident. 15 000 per person and 30,000 total for injuries in that wreck. The last number is total of property damage your policy will pay--10,000. It doesn't take much of an accident to go over that amount. You are responsible personally for any damages over those figures. Truly I'd be scared to drive with that little coverage!
Jan 27th, 2011 | 01:43 PM
#11
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I don't know your personal and financial circumstances but in my opinion you are CRAZY to drive around with those liability limits. Do you own property? Are you employed? Say good bye to any assets you have and be prepared to have your wages garnished if you are involved in even a minor accident. It doesn't take much to cause $10,000 in property damage or to cause an injury that is worth more than $15,000. You will be surprised at how little it will cost to increase your liability limits. I would go with a single limit policy of $300,000 and an umbrella policy.
Jan 27th, 2011 | 04:03 PM
#13
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Sally, I would strongly urge you to talk to your insurance agent or your insurance company.
You are really "gambling" with just carrying the minimum limits of liability that your state requires.
You have been given some good thoughts although what your vehicle is worth has nothing to do with what your Bodily Injury and Property Damage limits should be. To have an Umbrella policy I am sure that you will find that your insurance company will require you to carry a certain amount of liability insurance for your auto insurance and also a certain amount of liability insurance under your homeowners policy if you own your residence or under your renter's homeowners insurance if you rent your residence. Do call and talk to your insurance agent or insurance company.
You are really "gambling" with just carrying the minimum limits of liability that your state requires.
You have been given some good thoughts although what your vehicle is worth has nothing to do with what your Bodily Injury and Property Damage limits should be. To have an Umbrella policy I am sure that you will find that your insurance company will require you to carry a certain amount of liability insurance for your auto insurance and also a certain amount of liability insurance under your homeowners policy if you own your residence or under your renter's homeowners insurance if you rent your residence. Do call and talk to your insurance agent or insurance company.
Jan 27th, 2011 | 07:28 PM
#14
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Tomboy, several years ago, my daughter was in the hospital for exactly 2 days (48 hours), during which she had surgery on her shattered ankle. The hospital bill, not the surgeon, not the anesthesiologist, just the hospital, was $55,000 (not one penny of exaggeration). Of course, we were fully insured, and the insurance company actually only paid the "contract" rate of $6,000, but the bill was, as I said $55,000 (which I guess is what we would have been expected to pay had we NOT been insured, which is ridiculous, of course...)
Jan 27th, 2011 | 07:46 PM
#15
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And about five years ago I was taken by an ambulance due to being so sick. It was decided that I had a terrible virus. I was in the ER from about 4:00PM to about 2:00AM. I did get good care. My bill from the hospital was something like $7,000.00. When I say the bill I was not charged that but it was a "for for your information" type of statement. I was fully covered by my personal insurance health policy. I don't remember what the contracted rate was and what my insurance company paid but just seeing what the hospital statement read was shocking. And that $7,000.00 did not include the ER physician's bill.
Jan 27th, 2011 | 07:47 PM
#16
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Often, if drivers have good driving records, the better bet is to bank the difference in premium.
The first thing the other party's lawyer will do is ascertain your coverage, so high umbrellas aren't necessarily the answer.
Having no assets does not necessarily make you judgment proof. In many states, if you are liable and default on payment, you won't be able to renew your driver's license or vehicle registration until you pay.
The first thing the other party's lawyer will do is ascertain your coverage, so high umbrellas aren't necessarily the answer.
Having no assets does not necessarily make you judgment proof. In many states, if you are liable and default on payment, you won't be able to renew your driver's license or vehicle registration until you pay.
Jan 27th, 2011 | 07:53 PM
#17
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Doug_Stallings on Jan 27, 11 at 1:24pm This isn't really a travel question. It's a car-insurance question. So it belongs in the Lounge. Please re-post it there.
sf7307 on Jan 27, 11 at 1:57pm Isn't this the Lounge?
Was last time I looked.
Would be nice if monitors noted when they move a thread.
sf7307 on Jan 27, 11 at 1:57pm Isn't this the Lounge?
Was last time I looked.
Would be nice if monitors noted when they move a thread.
Jan 31st, 2011 | 02:48 AM
#18
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Liability is an important component of car insurance. While you are required by state regulations to carry minimum liability coverage, it won’t hurt to increase your liability if you feel the need to do so. But the amount has to be decided by you depending on your financial situation. I also agree with the suggestion that you may want to consider getting umbrella insurance on top of your AZ car insurance ( http://hartfordauto.thehartford.com/...nsurance.shtml ) in case you exhaust your policy limit.
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