WEDNESDAY, FEBRUARY 4, 2015
Does automobile Full Coverage mean a person is covered for EVERYTHING?
Absolutely NOT!
ALL Auto policies have limitations. An agent typically knows what a person is asking for when they hear full coverage; however, rarely is a person covered for EVERYTHING. An agent/broker/producer will assume the person wants coverage: in the event the driver hits something or is hit by something, car stolen, protected if driver or other drivers are injured, want cars fixed, rentals cars provided etc.
On (2-7-2015) a Commuter Train in New York was derailed after colliding with an automobile, 6 fatalities(including the car driver) and who knows how many injuries with extensive damage caused to the train. If a person carried $500,000 on their auto insurance liability plus a separate $1,000,000 umbrella policy they will NOT have enough insurance and I bet the driver carried "full coverage". Initially 8 lawsuits come to mind, Train company and members of the surviving 7 family members, who knows what the final verdict rendered will be at this point. Amongst many other things, one can bet the wages will be garnished for the driver of the car's lifetime for this one mistake.
Yes odds are slim of hitting a train; however, an 18 Wheeler transporting a full load of cargo could add up to $1,000,000 especially when it comes to loss of income and other cars and driver's involved.
Next time you hear someone say, I carry full coverage with minimum auto liability limits because I am on a fixed budget or you can't squeeze water from a rock, do you think a jury will feel sympathy for the budget minded driver when serious injuries/fatalities have occurred? What are your liability limits? 25/50/10(MO state minimum), 25/50/25, 50/100/50, 100/300/100, 250/500/250 or 500/500/250? Each state sets it's minimum limit of required auto liability coverage; although, are the choice of each person. Some Leasing companies may mandate 100/300/50 liability limits. The Flanigan Insurance Agency in St. Louis, MO has always tried to educate a caller while promoting higher limits of coverage. It is up to EACH client to select the limit of protection they believe is appropriate. If in doubt, feel free to ask for a quote with higher limits.