Ok, borrowed a little from AC/DC in that headline.
Here’s my point…I’m seeing ads all over the place for companies pushing the low limit car insurance policies. But do people really know what their getting when they go online or phone in a request for the minimum limit pennsylvania auto insurance rate? I’d have to guess that they are simply looking for a low rate and aren’t concerned with details. I get all that. What I don’t understand is that some companies are specializing in the coverage at minimum limits! As insurance agents I think we have a responsibility to at least tell our customers what they might be risking by taking the minimum pennsylvania auto insurance coverage.
Here’s a brief scenario…you buy the minimum limits on your pa auto insurance policy and you keep that policy for the next five years or so. The day comes when you are involved in a fender bender accident and you were in the wrong…a few minor injuries. “No big deal” you think…well the other driver has a history of back ailments and starts treating with the chiroprachter right after the wreck. Days turn to Weeks to Months and now you’re being served with papers that he’s sueing you for pain and suffering as a result of the accident. First question…yes he can sue you, and he has up to two years to do it. Second question…yes he will win because you’ve already admitted guilt and your insurance company did also by paying for the damage to his car. Third question…what’s going to happen to you ? Good guess, your insurance will pay 15,000 and then they’re gone…that’s all the coverage you bought and that’s what they’re legally obligated to pay. If your net worth is in excess of 15K…(not too hard to do) the courts may allow this plaintiff to persue a judgement against you. Reason…you did not act as a reasonable and prudent person should have acted when buying the coverage.
Is it worth it ? You’ll have to be the judge.
What would it have cost to have proper coverage ? the difference between 15,000/30,000 limits with a preferred carrier and reasonable limits of 100,000/300,000 are an average of $40-$60 a year per car. Ask someone who’s been sued and not had enough coverage if they would have paid an extra $50bucks a year to have the right coverage.
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