There was an unfortunate car accident in our area that resulted in massive property damages requiring “hundreds of thousands of dollars” in repairs. It was noted that the driver at fault was unlikely to have adequate insurance to pay for all the damage and, therefore, would need to pay for those significant damages “out-of-pocket.”
This incident truly exemplifies the importance of proper insurance counsel and protection. What people need to better realize is that insurance is meant for the extreme financial burdens that result from rare, catastrophic events like the one above. Insurance sold with inadequate limits (as is a common theme through talking geckos and other 1-800 or on-line options) results in inadequate coverage and a potentially lifelong financial problem. There is every likelihood that the responsible party will be ordered by the courts to reimburse those damages paid by the insurance carrier who settled the first party property damage claim. This might be handled by liens and/or wages being garnished for a very long time.
If your car is registered with the NY DMV, the minimum liability coverages (i.e. the cheapest coverages) are:
- Bodily Injury – Minimum $25,000 per person / $50,000 per accident
- Property Damage – Minimum $10,000
- Basic Personal Injury Protection minimum – Minimum $50,000
These minimum limits are simply not enough to provide proper protection on a day-to-day basis in today’s world. Lets say the individual above had the minimum property damage of $10,000. They could now be well over $200,000 in debt, rather than having their insurance carrier handle the entire loss.
In another scenario that happened, a distracted driver crashed into the back of one vehicle, resulting in that vehicle to subsequently be pushed into another. This sort of chain-vehicle damage alone could easily cost $50,000 or more, not taking into account any bodily injury and the potential lawsuit(s) for those injuries.
What if you were driving home from work when the sun blinded you for an instant, and you slam into the side of a Mercedes or Porche? What if an animal or child ran out in front of your car, causing you to swerve into a utility pole? What if your brakes failed and you landed into another’s business or home? These are accidents that happen all the time! Speak with your Independent Insurance Agent and know your options; providing you proper advice and protections is what we do best!