As I was driving to work today down the beautiful 5 freeway, I encountered 3 multi-vehicle accidents within a span of 10 miles. The first one was a head on collision at slow speeds but both cars were totaled, all the passengers were ok and walking around. The second one was a car that side swiped another taking off the door, fender, etc. The third was a full size work truck that rear-ended a Maserati which is a $200k+, not uncommon is San Diego.
Many people are uneducated when it comes to the basics of Auto insurance which is why we do NOT use the term "FULL COVERAGE" in my office. Using the term "FULL COVERAGE" creates a very-very false sense of security that is far from the truth. I'm going to explain how....
California State Minimum Liability Limits:
$15k/30k/5k
The first number, $15,000, is the maximum amount your coverage will pay per person in an accident. The second number, $30,000, is the maximum your car insurance will pay for the total accident. The third number $5,000 is Property damage liability limit, the maximum amount your insurer would pay for damage to another party's property or car.
Here's where the very-false sense of security comes to play. Yes you may have what people consider "FULL COVERAGE" which are the state minimum requirements with comprehensive and collision coverage to repair your car with let's say a $500 deducible (amount paid to file a claim). Let's use the real life example from this morning with the work truck rear-ending the Maserati. The owner/driver of the work truck has $15k/30k/5k, the entire Maserati rear end needs to be replaced with frame damage to this exotic luxury sports car. Repair estimates are $50,000, your "FULL COVERAGE" policy has $5,000 in Property Damage coverage guess what you are personally on the hook for $45,000 out of pocket!! WHAAAT!?!? Oh and did we mention the driver of the Maserati has fairly serious medical bills of $50,000, your "FULL COVERAGE" has $30,000 max to cover these bills you are personally on the hook for the remaining $20,000!!! So your total personal out of pocket liability has just totaled $75,000 from a medium speed rear-end accident!!
These are the types of things I think while commuting daily down the 5 freeway and seeing these types of circumstances happen literally daily. Many times you can increase your coverage's 4x for $20-40 month, or as I like to say for the price of 6 Starbucks coffees ;-)
So please do a policy review with your trusted insurance agent or call us for a free, no obligation review to make sure your properly covered!
Respectfully,
Taylor Company Insurance & Financial Services
Patrick Patterson
President
Cell: 760.566.8544
Office: 619.477.6330
Fax: 619.477.1882
Website: www.taylorhouseinsurance.com
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