When you buy auto insurance you assume that you are covered. Once the policy is in force, you should have no problems should an accident happen, right? Depends on the accident, the persons involved, and the coverage options you have previously selected.
Choosing to buy only the minimum state-mandated insurance for your car, truck or motorcycle is short-sighted. It may save you money month to month, but if you are involved in an accident and you have assets the chance of law suit is high, especially here in Florida.
Potential Problem Areas
Medical Payments – Medical payments can become an issue. If you do not carry health insurance and you also opt not to carry medical payments on your auto insurance, you are asking for trouble. Should you be injured in a car accident and need medical attention or even hospitalization, there is no one to bill but you, yourself directly. The other party’s insurance company (assuming that they are at fault) may not pay right away as an incident claim and investigation needs to be opened.
Property Damage – If you only carry $20,000 collision liability and happen to hit a higher end automobile the damage can well exceed your policy leaving the person hit to seek retribution against you legally, not against your insurance company.
No Uninsured Motorist Coverage Property | Bodily Injury – If you are hit by someone with no coverage, and you have no coverage either you are simply out of luck. You will have to pay out of pocket for repairs and medical expenses and you risk being sued by the other party for theirs as well.
No Rental Coverage – If your car is out of commission and you have no rental coverage you may be without a ride for a time.
What could happen
When an attorney decides if they will or will not accept a case to file a lawsuit against you as the result of an accident. To be judgment proof you must own no assets. If you do own assets, it is important to set policies to cover yourself. If this isn’t done and the limits are not set high enough to cover the other drivers’ damages, including medical bills, and you do have assets you can almost assuredly expect a suit.
They can come after your liquid assets such as banking accounts, put a lien on your property or home, and even seize your car and auction it for sale to cover the judgment. The possibility also exists that they could get a judgment against your future earnings, garnishing your wages. An unexpected lawsuit can be financially catastrophic. It can damage your credit rating and potentially bankrupt you.
Avoid the hassle, stress and possible financial issues. Call and talk with a Centennial Insurance Services representative today. (239) 247-5125 www.cisinsfl.com.
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