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 Posted: Sat Mar 08, 2008 1:55 pm Post subject: |
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| Quote: | | Also, I don't know of any state where an insurance company can garnish wages. About the best they can hope for is a suspension of the person's DL. |
As in nearly any suit that a carrier is paying bill ulitmately (other than bad faith etc of course)...the suit is actually filed in the insured's name, then of course the subro clause kicks in....I handled many claims/suits that were filed and judgements entered then the garnishment attached, (I'm speaking of purely subro here not excess)....You're right it's not often that something like this would happen (excess)...I personally just wouldn't take the risk that it 'might'...also (IMO) kind of dirty pool too...if a person knowingly (not saying you are suggesting this tcope) takes 10k limits out hurts someone that has 50k in damages, and cavalierly thinks, ''oh well''...(assuming the other party doesn't have UIM of course)....something smells about that....how would it feel if the shoe were on the other foot? And again, there is always the possiblity of an excess judgement....scares me.....and I ain't scared of too much! 
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Lori
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| Posted: Wed Mar 12, 2008 1:13 am Post subject: |
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Dear Lori and tcope, thanks again for helping.
| Quote: | | What EXACTLY do you know about the damages to the vehicle and injuries? How much (monetarily) damage is there to the car? What are the injuries claimed? Was there only one person in the car? What did the police report say? |
This never happened to me before, so I really don't have a clue as to how much monetarily damage is there to the other car, I really don't know what went on with myself on the day of the accident, I was trying to change line, I checked to see if it was safe to change to the other line as I always do, but......just in a second of time....I slammed hard onto the side of the other car, to me, the other car's side seems to have severe damage, there was the driver, another passenger, and a dog in the car, I was scared to death and did not say much at the scene except for changing information, the other driver did mention that they had pain all over, felt dizzy, sick, etc. and I am not sure if I mis-heard or mis-understood that one of them was pregnant or not? I was very scared at that time. The police report did not say much, just a description of what happened.
| Quote: | | I have seen excess judgements and garnishments...but never seen anyone lose their homes etc..(been at this since 1987)... |
Do you mind if you can explain how an excess judgment and garnishments works? I am not sure if I am right, but I heard that if you get a garnishment against you, the garnishment can include garnishing both your wages and other properties, such as your home, then I will still lose my home, right? I am not sure if I am right or wrong?
| Quote: | | )...your carrier would force the other party to file suit, rather than just had over your limits without a release... |
Sorry, I don't really understand this part as to why my carrier would force the other party to file suit against me? could you please help to explain, sorry that I am not very knowledgeable.
| Quote: | | .....unless there is another 'deep pocket' somewhere...that a claimant attorney needs that judgement to get into.... |
Is there any examples as to what kind of "deep pockets" the claimant attorney is looking for?
| Quote: | | As in nearly any suit that a carrier is paying bill ulitmately (other than bad faith etc of course)...the suit is actually filed in the insured's name, then of course the subro clause kicks in....I handled many claims/suits that were filed and judgements entered then the garnishment attached, (I'm speaking of purely subro here not excess).... |
Sorry, I think I don't understand this part as well, "the suit is actually filed in the insured's name, then of course the subro clause kicks in....I handled many claims/suits that were filed and judgements entered then the garnishment attached, (I'm speaking of purely subro here not excess)" does that mean the insured actually lost the lawsuits and therefore has a garnishment against the insured?
| Quote: | | ...also (IMO) kind of dirty pool too... |
What is IMO?
Thank you for your time and in sharing your expertise
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Linda
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| Posted: Wed Mar 12, 2008 4:47 am Post subject: |
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Hi Linda, I'm sure Lori and tcope will soon be back to answer your questions. Hence, I'm refraining myself form answering the technicalities of your case. I'll only answer the following question of yours. 
It means In My Opinion. Similarly, IMHO implies In My Honest Opinion. Its something typical of the forums to write like this. Hope that explains.
Thanks,
Carol |
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carol
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| Posted: Wed Mar 12, 2008 10:50 am Post subject: |
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| Quote: | | I checked to see if it was safe to change to the other line as I always do, but |
More than likely the other vehicle was in your 'blind spot' or maybe they were changing lanes as well...(?)...these type of accidents happen alot..as to the damage to the other vehicle...you need to call your adjuster and ask them how much are the damages, have you decided I was 100% at fault, and have you made arrangements to fix their vehicle... | Quote: | | The police report did not say much, just a description of what happened |
Did the police report show the area (on the road) of the impact? meaning was it in your lane, other lane, or on the line? did it say that you were at fault? did you get a ticket? If you look hard there should be a box or area on the report that says something like, ''probably contributing circumstances'...also is there a 'narrative' not what you or the other party said, but what the cop said, generally also there will be a 'number' (there is a key on the report as well telling what the numbers mean) indicating injuries...see if you can find that too..also ask you adjuster are they injured? if so what are their injuries...etc... | Quote: | | Do you mind if you can explain how an excess judgment and garnishments works? |
If and that's a huge ''if'' an excess judgement would be awarded (and really really really I don't think you have anything to worry about), especially with the discription of injuries, (or lack ) meaning no one was bleeding and rushed to the hospital in ambulances uncon......if an excess judgement were awarded, (lets say 10k over your coverage) any time there is a monetary judgement then the person holding that judgement has to try and collect it, they can file for a garnishment against your wages, so say there was a 10k judgement they could file this garnishment and get a set amount from each of your pay checks till it was satisfied (that 10k paid) most states only allow a certain percentage of your check to be taken....again...I seriously doubt anything even close to this will happen... | Quote: | | I am not sure if I am right, but I heard that if you get a garnishment against you, the garnishment can include garnishing both your wages and other properties, such as your home, then I will still lose my home, right? I am not sure if I am right or wrong? |
I suppose Linda that this 'may' be possible many states protect a persons home, especially if there is another avenue of collection (ie pay check garnishment)...I have never ever in my life seen anyone lose there home for ANY type of judgement...(other than bankrupt, or foreclosures)......please honey try hard not to worry about your house, I can all but guarantee you that this won't happen....(even an excess judgement period is very very unlikely)..... | Quote: | | Sorry, I don't really understand this part as to why my carrier would force the other party to file suit against me? could you please help to explain, sorry that I am not very knowledgeable |
Don't apologize, it's very hard to understand, and besides that's what we try and do here! (explain things!) You're carriers job is to PROTECT you that is what your policy is all about...they would in no way just hand over your limits, WITHOUT a full release (in other words PREVENTING the other person from filing ANY type of suit against you)....to do that would not be protecting you and your interests thus opening your carrier up to a suit filed by you against them for their not adequtely protecting you...so if a situation got to that point, where the other party would not accept your limits, and sign a release, (them wanting limits and no release) your carrier would make them file suit, and your carrier would defend it for you...(all suits like this auto accidents, you can't sue the insurance company you have to sue the party, then the carrier has to pay the judgement)....please don't hesitate if you still don't understand, and I'll try again, it is really hard to understand....I agree....again, the chances of this happening are probably a million to one! As I said, this doesn't sound like an excess claim to me at all at this point...if the damage is all the way down the sides, (better than front hit), do you mean both doors, 1/4 and fender? Where they able to open the doors on the damaged side? Was the vehicle towed? Was there any fluids leaking that you could see? again ask your rep about these damages | Quote: | | ....Is there any examples as to what kind of "deep pockets" the claimant attorney is looking for? |
Sure, if that umbrella policy were in play (doubt it), or if you had a 'gazillion' dollars in the bank, a huge trust fund, etc | Quote: | | ..."the suit is actually filed in the insured's name, then of course the subro clause kicks in....I handled many claims/suits that were filed and judgements entered then the garnishment attached, (I'm speaking of purely subro here not excess)" does that mean the insured actually lost the lawsuits and therefore has a garnishment against the insured |
Like I said above when there is a suit filed (except bad faith against your own carrier), the suits have to be filed in the 'participants' names, not the insurance company, if i have a wreck with 'joe blow bad driver' and he won't pay to fix my car or his insurance company says he was not at fault, i must sue joe blow, i cannot sue joe blows insurance company, however behind the scenes joe blows insurance carrier is paying all the defense bills to fight my suit....then if i win my suit, his carrier would have to pay me that judgement (or of course appeal blah blah)....when i say 'subro claused kicked in or speaking of subro only' that means, again same thing with joe blow, this time joe blow is uninsured, and i got tired of waiting on joe to pay me (or if he's insured his stupid insurance company) so i had my car fixed under my collision coverage (my company paid minus my deductible) once they make payment the subrogation claus kicks in (they have a right to attempt to recover this money from the at fault party) so they (in my name) sue joe blow, get a judgement, and then garnish joe blows pay checks till the judgement is satisfied (assuming joe doesn't just pay it)...clear as mud isn't it? 
Linda, call your rep and have a nice long conversation about what is going on with your claim....have you got a letter saying that there 'may' be an policy limit or excess problem? Have you repaired your vehicle? How much damage was there to it?
Please let us know and we'll continue to try and help you through this please don't hestiate to ask ANYTHING...there are no dumb questions...and please please please try hard not to worry about this...as i said your company's job is to protect you !
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Lori
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| Posted: Thu Mar 13, 2008 11:48 am Post subject: |
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Dear Lori,
Thank you very much for your kindness and for sharing those valuable information, it is really comforting talking to you on the forum, and it is really nice to have someone like you to guide us through these tough days. I wish my adjuster and the other carrier's adjuster were like you, nice and friendly.
I did call my adjuster, but was told that they are still investigating and they have a lot of cases to work on, they will let me know when they are more into the investigation.
| Quote: | | Did the police report show the area (on the road) of the impact? meaning was it in your lane, other lane, or on the line? |
Sorry, where can I find this part? I don't see it on the report?
| Quote: | | did it say that you were at fault? did you get a ticket? If you look hard there should be a box or area on the report that says something like, ''probably contributing circumstances'... |
I did not get a ticket, I am shocked to hear this, I did not know that police issue traffic tickets in a car accident situation, I am lucky that I did not get one, I would have been really sad if I did get a ticket, but the police report said that I was intending to change line and caused the accident, is that what I should be looking for?
| Quote: | | ......if an excess judgement were awarded, (lets say 10k over your coverage) any time there is a monetary judgement then the person holding that judgement has to try and collect it, they can file for a garnishment against your wages |
If, I mean only if an excess judgment were against me, like in your example, 10k over my coverage limits, will my insurance carrier still hire a lawyer to fight for me and protect me, or I will be on my own since it is 10k over my coverage limits?
I was just thinking that medical expenses are so expensive that some simple check up or physical exam will add up to a large medical bill, and if, I mean if the medical bill do exceed my liability limits, how will my insurance carrier protect me? will my insurance carrier still protect me?
I remember you mentioned in a previous post that "...if a person knowingly (not saying you are suggesting this tcope) takes 10k limits out hurts someone that has 50k in damages, and cavalierly thinks, ''oh well''.."
So I was just thinking, in this kind of situation, how will my insurance carrier protect me? will my insurance carrier still protect me?
| Quote: | | ...if the damage is all the way down the sides, (better than front hit), do you mean both doors, 1/4 and fender? |
I believe the damage is all the way down the sides, but I am not really sure what is "1/4 and fender"? Dear Lori, why is it better than front hit?
| Quote: | | Sure, if that umbrella policy were in play (doubt it), or if you had a 'gazillion' dollars in the bank, a huge trust fund, etc |
Do you mean that if I got an umbrella policy, I will put myself even more at risk for being a target of lawsuits because of the high policy limits?
| Quote: | | if i have a wreck with 'joe blow bad driver' and he won't pay to fix my car or his insurance company says he was not at fault, i must sue joe blow, i cannot sue joe blows insurance company, |
In this situation, when you sue joe blow, does that mean your insurance carrier will actually sue joe blow in your name? or you have to hire your own lawyer to sue joe blow all on your own?
| Quote: | | so i had my car fixed under my collision coverage (my company paid minus my deductible) once they make payment the subrogation claus kicks in (they have a right to attempt to recover this money from the at fault party) so they (in my name) sue joe blow, get a judgement, and then garnish joe blows pay checks till the judgement is satisfied (assuming joe doesn't just pay it).. |
Sorry, I am still confused a bit here, so if your insurance carrier sue joe blow in your name, got a judgment, shouldn't joe blow's insurance carrier fight back for joe blow and if joe blow's insurance carrier loses the suit, shouldn't joe blow's insurance carrier be paying you the judgment? if so, joe blow will not get a judgment with garnishment attached, right? hope you can understand my question, I hope I am clear 
| Quote: | ....have you got a letter saying that there 'may' be an policy limit or excess problem? Have you repaired your vehicle? How much damage was there to it?
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I did not get a letter, but the other driver's insurance company called me for a statement after the accident and the person who called me told me that the other party is very unhappy about the accident and is seeking the help of a lawyer.
My adjuster said that they will schedule an estimate appointment for my car and will let me know soon.
I also read several other posts on this forum which are all very helpful as well, but I read from a post that someone asked when the at fault party's insurance carrier issued a payment to the other party who is seeking payment, does the at fault party's insurance carrier also need to obtain a property damage release from the other party who received the payment, the answer was "... your carrier should either obtain a property damage release (almost no carrier will bother with this) or handle anything else that comes up. " But if "(almost no carrier will bother with this)", how can our own insurance carrier protect us from PREVENTING the other person from filing ANY type of suit against us? I am confused again.
Thank you very much for your kindness and have a great day.
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Linda
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| Posted: Thu Mar 13, 2008 12:25 pm Post subject: |
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| Quote: | | I did call my adjuster, but was told that they are still investigating and they have a lot of cases to work on, they will let me know when they are more into the investigation. |
This is good if they are indeed actively investigating..(rather than just swamped and told you this...sorry it happens)....there is the distinct possiblity that you won't be found 100% at fault...which is great...let's keep our fingers crossed on that one! | Quote: | | Sorry, where can I find this part? I don't see it on the report? |
No I"M sorry I should've told you if there is a diagram that the officer drew it should show there where on the roadway the impact occured... | Quote: | | I am shocked to hear this, I did not know that police issue traffic tickets in a car accident situation |
sure they do that's a big part of their job.... | Quote: | | I was intending to change line and caused the accident, is that what I should be looking for? |
yep, darn it....  sounds like you'll more than likely be at fault unless it says the other vehicle also was changing lanes? do I dare to hope? | Quote: | | If, I mean only if an excess judgment were against me, like in your example, 10k over my coverage limits, will my insurance carrier still hire a lawyer to fight for me and protect me, or I will be on my own since it is 10k over my coverage limits? |
More than likely yes, they would still defend it....(based on the injury and damages you have discribed) they would discuss this with you and get your opinion...but on a claim of this size (small or minor injuries it sounds like) they would more than likley defend it... | Quote: | | I mean if the medical bill do exceed my liability limits, how will my insurance carrier protect me? will my insurance carrier still protect me? |
Absolutely! they will protect you by doing everything they can (including defending a lawsuit) to get a release signed for within your limits (barring the other party from filing an excess suit against you)... | Quote: | I remember you mentioned in a previous post that "...if a person knowingly (not saying you are suggesting this tcope) takes 10k limits out hurts someone that has 50k in damages, and cavalierly thinks, ''oh well''.."
So I was just thinking, in this kind of situation, how will my insurance carrier protect me? will my insurance carrier still protect me? |
This doesn't pertain in your situation, we (adjusters) get off on philisophical discussions sometimes, and that is all that was...put that out of your mind...(sorry if I confused you).... | Quote: | | I believe the damage is all the way down the sides, but I am not really sure what is "1/4 and fender"? |
the fender is the panel in front of the front door, the 1/4 is the panel behind the rear door... | Quote: | | Dear Lori, why is it better than front hit? |
front end hits typcially cost a lot more to repair than side swipes in a front end you have all the cooling, innerstructure, not to mention air bags...just costs more to repair front end hit than side, (generally speaking)..... | Quote: | | Do you mean that if I got an umbrella policy, I will put myself even more at risk for being a target of lawsuits because of the high policy limits? |
no, that's not what I meant (i'm really adding to your confusion rather than helping elimanate it aren't I? I'm so sorry)..you ask what other types of 'deep pockets' there might be... | Quote: | | In this situation, when you sue joe blow, does that mean your insurance carrier will actually sue joe blow in your name? |
EXACTLY! I think you've got it! your carrier would be paying all the legal expenses as well. (if you used your collision coverage)... | Quote: | | or you have to hire your own lawyer to sue joe blow all on your own?. |
NO, unless you didn't have insurance coverage yourself...or no insurance company paid for the damage...then of course it's just two people fighting it out in court... | Quote: | | Sorry, I am still confused a bit here, so if your insurance carrier sue joe blow in your name, got a judgment, shouldn't joe blow's insurance carrier fight back for joe blow and if joe blow's insurance carrier loses the suit, shouldn't joe blow's insurance carrier be paying you the judgment? |
Yes you are absolutely correct 'if' joe is insured, if not this is the way it would work (garnishment etc if necessary | Quote: | | )...if so, joe blow will not get a judgment with garnishment attached, right? |
correct! the judgement would still be against joe, but his carrier would satisfy the judgement (thus no garnishment etc) again if he is insured... | Quote: | | I did not get a letter, but the other driver's insurance company called me for a statement after the accident and the person who called me told me that the other party is very unhappy about the accident and is seeking the help of a lawyer. |
Ok, well this isn't so bad then...many times people run out and get a lawyer at the first 'bump'...don't be surprised if you get a letter from these peoples attorney saying the atty is representing them, and they want a million dollars...just call your carrier and get the letter to them, they will handle it from there....DO NOT EVEN SAY HELLO to their attorney, you should have absolutely zero contact with that attorney or anyone attempting to get any information from you on their behalf...(ok that you talked to their adjuster) just don't give the (other) adjuster any information regarding your policy limits, or assets etc...(very doubtful the adjuster would ask but ''some'' attorneys can be kind of sneaky and try to intimidate people)...if their attorney would for some reason contact you, just give them your adjusters number...(really doubt they will just giving you a heads up)... | Quote: | | other party is very unhappy about the accident |
who is every HAPPY that they had an accident? | Quote: | | My adjuster said that they will schedule an estimate appointment for my car and will let me know soon |
Is your car driveable? How long ago did this happen? Who is your carrier? I'm thinking it may be taking longer than it should... | Quote: | | I also read several other posts on this forum which are all very helpful as well, but I read from a post that someone asked when the at fault party's insurance carrier issued a payment to the other party who is seeking payment, does the at fault party's insurance carrier also need to obtain a property damage release from the other party who received the payment, the answer was "... your carrier should either obtain a property damage release (almost no carrier will bother with this) or handle anything else that comes up. " But if "(almost no carrier will bother with this)", how can our own insurance carrier protect us from PREVENTING the other person from filing ANY type of suit against us? I am confused again. |
I can see your confusion, most of the time property damage claims we don't get releases, BUT BUT BUT if there was an excess problem, then there definately would be a release taken....most of the time that isn't an issue....in your case, ''if'' it is an issue your company would secure a p.d. release as well.
| Quote: | | Thank you very much for your kindness and for sharing those valuable information, it is really comforting talking to you on the forum, and it is really nice to have someone like you to guide us through these tough days. I wish my adjuster and the other carrier's adjuster were like you, nice and friendly. |
I'm glad we can provide some information and more importantly some comfort to you...we're all glad to help....keep asking until you understand...  also answer the couple of questions I've asked...you have a great day too...
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Lori
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| Posted: Thu Mar 13, 2008 1:50 pm Post subject: |
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[arrggg... I spent about 30 mins typing up some good info and accidentally deleted it. I can only add part of it again]
OP, I'll quickly say that right now there is no _good_ indication that this is a policy limits case. The plaintiff's attorney saying so is _not_ a good indication. Adjusters settle injury cases for $10k when the attorney's initial demand is for 1 million. It's a game that is played as the plaintiff's attorney has no reason not to make everyone think his/her client has a _huge_ claim. Might as well shoot for the stars. It's like buying a car... why would the dealer start with a low price? Of the few claims where suit is filed, only about 3% of those suits ever make it into court. Plaintiff attorneys want to make money. The more work they do, the less they make for that money. This is why most will settle for insurance money. If they are made a _good_ offer, its better for them to take it and move on to the next case. Is it worth spending weeks on depositions and in court just to _maybe_ get a judgement against a person who may or may not ever pay that judgement? Also, in _some_ states, if the verdict is for less then what was offered, the injured person is then responsible for the defendants defense costs. That is not true everywhere though. But its another reason so few cases ever actually go to court.
Your carrier will always provide you a defense! That cost is not connected to nor limited by your policy limits. If your carrier were to offer your policy limits and suit was still filed, your carrier would pay what they needed to in order to provide you legal defense (provide you an attorney).
I _think_ I tend to disagree with some of Lori's information...
I've never heard of a carrier filing a suit against a person who has insurance in order to recover the amount they paid on a loss. 1) It's not cost effective. The carrier would need to pay an attorney several thousand's of dollars and could also end up walking away owing the other parties defense costs if the verdict was less then the limits of the other person's policy. 2) Most carriers are members of Inter-company arbitration. This means they cannot file suit until they have had Inter-company arb make a determination on it and then both carriers are bound by that decision (which makes filing suit in court even more perplexing). 3) If the X carrier filed suit against a person who had insurance, X carrier would not get a dime from the person's carrier until the suit was settled.
I do know that carriers go after people _without_ insurance. This is done all the time. I've still _never_ heard of this being done via suit thought. I see it done by going through the state and having the person's drivers license suspended.
As far as limits... I don't condone low limits but I also don't recommend that a person _only_ consider how much of a loss they could _cause_ when determining what limits to obtain. I am actually saying that a person needs to consider that the liability insurance they are paying for not to protect others, rather themselves. We (as people who work for insurance companies) tell people that they should obtain coverage to protect themselves... after someone get's hit by someone without insurance we tell them, "this is why you should consider paying for collision coverage... to protect yourself". But then we also tell people they should pay for huge liability limits to protect "others"? That is a slight exaduration in order to make people see my point (as no one recommend "huge" limits... only higher limits). Here is where I tie it all in together... my point is that people need to consider the likelyhood that someone will want to turn down their liability limits in order to pursue the insured directly (and in many cases, forgo filing under their _own_ insurance in order to go after the other person directly). If I'm living paycheck to paycheck and have a hard time putting food on the table, perhaps I want to consider lower liability limits. Again, I'm not condoning lower limits. |
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tcope
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| Posted: Thu Mar 13, 2008 7:43 pm Post subject: |
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| Quote: | | I do know that carriers go after people _without_ insurance. This is done all the time. I've still _never_ heard of this being done via suit thought. I see it done by going through the state and having the person's drivers license suspended. |
yeah tcope we've discussed this before, and apparently this is state/company dependent...as I was a subro specialist the first year I worked in claims, it was my responsiblity to file small claims actions, as well as hire local attorneys to secure judgements for physical damage claims as well as UM claims (which is subrogatible in my state)...I assure you I'm not making it up!  Then once I (thru the atty or in small claims) secured the judgement I could file a garnishment...you cannot (in my state) file a garnishment without a judgement....you can file a state report and pull the guys license, but that does nothing as far as collecting on the debt....
| Quote: | | [arrggg... I spent about 30 mins typing up some good info and accidentally deleted it. I can only add part of it again] |
ah dude, I've done that way too many times...it SUCKS BAD...  
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Lori
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| Posted: Sat Mar 15, 2008 6:51 am Post subject: |
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Attorneys go for the easy money. If they know their client has UIM coverage, which believe me, they know, they'll advise to try for max limits on yours and max the UIM. They'll then take 33% and walk away happy with little work done. Also, in your case, the attorney is gong to have to show you at-fault and most excess payouts involve gross negligence.
I would just let the motions take place. As for your umbrella questions.
| Quote: | can I still add Umbrella liability insurance or raise my auto policy liability limits now? or it is already too late since I have a claim pending investigation?
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You can never buy coverage for an event that has already happened.
When purchasing an umbrella policy, you must max out your underlying policy's liability limits. Most companies require you carry 100/300/100 on your auto and 300k on your home policy before you can obtain an umbrella policy. Being and "excess liability" policy, it is designed to cover the excess that your already high underlying limits can't. I don't believe your company will allow you to even purchase an umbrella policy while you still have an open liability claim.
| Quote: | | If it is already too late for me to either add Umbrella liability insurance or raise my auto policy liability limits now, when will I be able to do so? |
You should be able to raise your auto liability limits, but it will not affect how much you were insured for at the time of the accident. Insurance companies generally do not let you backdate coverage changes.
| Quote: | How much more does it usually cost to add Umbrella liability insurance or raise my auto policy liability limits to like Lori recommended 100k/300/100k?
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You'd probably be surprised how cheap it can be. Of course, both policies will be rated based on your driving history and age. I think once this claim is over, cost will not be an issue when you look back at the uncertainty low liability limits can create.
Sometimes it take a scare to realize the true benefits of insurance and having people to take care of the headaches. |
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MBTexas
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| Posted: Sat Mar 15, 2008 7:17 am Post subject: |
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| Quote: | | We (as people who work for insurance companies) tell people that they should obtain coverage to protect themselves... |
| Quote: | | But then we also tell people they should pay for huge liability limits to protect "others"? |
Everyone is clearly entitled to carry the coverages they feel comfortable with and I see your point, but I have to disagree.
I see it this way and generally others feel this way. I care what happens to someone else, should I hit and injure them. I've seen all too many times, people in bad shape financially because someone had an attitude of "I'm not worth anything, so sue me". Morally, I beleive that most people want to carry higher coverages to take care of someone they may injure. But I know some need to watch costs and that's why I try to find somewhere in the middle for them.
I have a friend who has a $75,000 judgement against him. In Texas, only child support or IRS can garnish wages and many people also bring it up when swearing they only need minimum limits. He can never finance anything. He has to pay cash for everything because banks will not loan him money with the judgement sitting over his head. If it could be avoided, why not protect yourself.
| Quote: | | after someone get's hit by someone without insurance we tell them, "this is why you should consider paying for collision coverage... to protect yourself". |
An insurance policy serves several purposes. To protect your liabilities and to protect your vehicles and yourself. So, in essence, you're correct. If a policy offers you 2 methods of protection, why not take advantage of it.
In the end, the question each and every insured should ask themselves is, how much can you afford to lose. |
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MBTexas
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| Posted: Sat Mar 15, 2008 10:53 am Post subject: |
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| Quote: | | When purchasing an umbrella policy, you must max out your underlying policy's liability limits. |
Now see I didn't know that! Thanks MB, (don't know that I handled more that two of these claims in my life)...So what you are saying is a person must purchase the highest limits allowed for that particular policy before you can even purchase an umbrella?
RE: low vs high or higer limits...MB I agree (for me) I want to avoid the possiblity of a worry...I do not carry the highest but they are up there, for the reasons you state...again it's a personal choice all the way.
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Lori
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| Posted: Sun Mar 16, 2008 6:01 am Post subject: |
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It differs by company, but the lowest amount of minimum limits allowed on the primary policy is 100/300/100. Many are going to 250/500/100 or 500 CSL. The carriers want to make sure the primary policy covers as much as possible before the excess policy kicks in. This also allows them the opportunity to settle most claims before the umbrella is even discussed.
If it's found that you lowered your underlying limits while carrying the umbrella and the insurer was not informed, you can be held liable for the difference between your max auto limits, and the minimum umbrella limits.
ie. you go to 50/100/50 and have a 500k single BI claim. If the required minimum is 100/300/100, you can be held liable for the 50k between your 50k BI limit and the 100k required limit.
If you have an umbrella, you should never mention you have it. It should be your"just in case" policy. |
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MBTexas
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| Posted: Sun Mar 16, 2008 11:15 am Post subject: |
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Great info MB, in you state (assuming you have the required limits) will an umbrella kick in on an auto claim then?
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Lori
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| Posted: Mon Mar 17, 2008 9:42 am Post subject: |
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Dear Lori, tcope, MBTexas, and all,
Thank you very much for all of your information and sharing your valuable expertise. I am currently out of town on a work related issue, it was a short notice that I have to go to cover one of my co-workers, sorry that I don't have my own laptop with me and I finally got to use someone elses laptop to access this forum.
I still have some questions that I need your help, I will be back soon, in the meantime, wish you all a very happy week.
Regards,
Linda
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Linda
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| Posted: Mon Mar 17, 2008 11:08 am Post subject: |
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We'll be here!
_________________
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Life gaurantees a chance NOT a fair shake
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FIND a way EVERY day to lighten the load of another
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Lori
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Location: Missouri
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