HOW AUTO INSURANCE WORKS
Written by Guardian Reliability Group, LLC on Jul 22, 2015
On july 17, 2015 a teenage girl was hit by an elderly driver. The girl was walking and the elderly driver hit the gas instead of the break and caused serious injuries to the girl. Fox news has the story
I wanted to take a moment to discuss insurance with you in this case from an insurance prospective.
If the elderly woman has the state minimum coverage of 30/60/15. And the girl suffers $800,000 of bodily injury damages, loss of wages and pain and suffering. That means the elderly lady will be held personal responsible for $770,000. OUCH!!!!!
Ok, so maybe you are asking, well, what other option does the elderly woman have to protect herself? She did what the state of Texas said she had to do - Well, I would recommend that when you purchase insurance max out the limits on your auto policy and then get a personal umbrella policy as well. Typically you can get a million dollar personal umbrella policy for less than $300 a year. So take that same scenerio above and what this would mean is the driver's policy would pay out $250,000 to cover the bodily injury and then the personal umbrella policy becomes active and will pay out the other $520,000.
Lets talk about the girl now. She has some serious injuries (two punchtured lungs, seven broken ribs, seven pelvis fractures, a broken ankle and internal bleeding). This girl is a teenage girl so she would still be covered on her parents policy. Her injuries are very serious and costs are going to add up very quickly. If her parents have Uninsured/Underinsured motorist then they can actually claim on their own policy. If they have Personal Injury Proptection or Medical payments, they can also look to their own policy. The the insurance company will subrogate against the negligent driver.
I just wanted to make you aware if you damage someone how your insurance will work and if you are damaged by someone what options you have.
Any quesitons, call me at 936-755-1200
located 412 N 1st Lufkin, tX75901