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Who do you put your trust in? People who care for you. People who have your best interest in mind. People who have spent time getting to know you. When you put your trust in someone you expect they “have your back” and that they won't mislead you in any way. These expectations shouldn't stop with individuals in our lives, but should extend to the companies we involve ourselves with – especially companies we give our money to.


Some insurance companies might offer the cheapest insurance, have the funniest commercials, and appear they have your best interest in mind. However, if insurance companies were placed on a scale, some of them wouldn't weigh very much, because of their lack of substance. The coverage is often minimal, their claims department uncaring, their customer service masquerading as sales, and their promises empty. When it comes to insurance, like the old saying goes, cheap is cheap; and cheap insurance can be aggravating and frighteningly dangerous.


California law requires all automobiles to be insured with a minimum coverage of 15/30/5. This is the cheapest option for automobiles. It's actually so minimal some companies won't even write a policy with those limits! Of all fifty states (and one district) only nine have these low limits and of those nine Florida and DC have even lower limits! Let's breakdown what 15/30/5  means.


The 15/30 refers to the liability payments to passengers if you injure them – passengers in the other car.


The 15 means there is a limit of $15,000 paid to an individual in case of injury or death.


The 30 means there is a limit $30,000 paid for the entire accident.

For example: If you collide with a car and injure three people in it, each obtaining $20,000 in medical expenses, the most your insurance will pay is $30,000. Plus, that $30,000 would need to be split up between those three injured in the car.


The 5 means there is a $5,000 limit for property damage. In the case of a car accident, this could help cover the damage to the cars.


According to a survey done by the National Safety Council, the minimum limits of liability will, quite frankly, hardly help you if you were at fault for a car accident.

The following is taken from the National Safety Councils website.


“The calculable costs of motor-vehicle crashes are wage and productivity loses, medical expenses, administrative expenses, motor vehicle damage, and employers' uninsured costs. The costs of all these items for each death, injury, and property damage crash were [in 2013]:

  • Death - $1,500,000

  • Nonfatal Disabling Injury - $80,700

  • Incapacitating Injury - $74,900

  • Non-incapacitating Evident Injury - $24,000

  • Possible Injury - $13,600

  • Property Damage Crash - $9,300 *


With the cheapest automobile insurance things can go from bad to worse in the blink of an eye. If you cause a car accident and you have $30,000 in liability, on average, you would still have to pay upwards of $44,900, $50,700 or, in the tragic event of a death $1,470,000.


This minimal coverage isn't substantial if you want to feel your insurance is protecting you. Next time you're shopping for insurance be sure and find an insurance agent you can trust and get to know on a personal level. Ask him or her exactly what and how much you’re covered for.





How much are you covered for in property damage?




*http://www.nsc.org/NSCDocuments_Corporate/estimating-costs-unintentional-injuries-2015.pdf
Posted 3:26 PM  View Comments

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