I (Aaron Buck) witnessed a car accident the other day that I thought I would share as an example of why the right liability limit
on your auto policy is crucial. Insurance needs are not static, they change over time, based on changes in assets and circumstances.  The state of Idaho has a very low requirement for auto insurance limits, while these limits might be a little bit cheaper premium wise, they can leave you and your family susceptible to great financial loss if you are ever involved in a car accident. Here is one example.

I was coming to a stop behind a long line of cars at a red light on a two lane highway. There were 25 or so cars ahead of me and 6-8 cars behind me, all waiting at the red light. I heard a loud crash and saw a large cloud of dust 50 feet behind me. I jumped out of my truck and ran to the scene to make sure no one was hurt, what I found was every parent with a young driver’s fear.

A young girl (16-18 years old) was driving a large SUV and had not seen the line of cars at the stop light, she rear-ended the last vehicle in line at a high speed. This collision pushed the first car into the next car in line which in turn was pushed into the next car. The first car to be hit then spun sideways into the oncoming lane where it was struck by a school bus. Thankfully there were no children on the bus! One driver was significantly hurt and another was complaining of pain, given the severity of the collision chances are most drivers were at least checked out by the EMS crew.

All told the accident totaled the SUV driven by the young girl, it totaled the first vehicle she struck, it did significant damage to the second vehicle, moderate damage to the third vehicle and significant damage to the school bus, five vehicles damaged! Two people and possibly more were hurt in the accident and required medical attention. Vehicle damages and medical expenses for five vehicles and two people can add up in a big hurry!

Now imagine the driver of the SUV that caused the accident was your son or daughter or maybe even you. If you had the Idaho state minimum liability limits you would be in a very financially dangerous position. State minimums of 25/50/25 would only provide $25,000 per person and $50,000 total for bodily injury caused by the accident, that may or may not have been enough depending on the severity of the injuries. These limits would only provide $25,000 for property damage. That is only $25,000 total available to fix all four vehicles that you caused damage to. In this case due to the severity of the damage there is no way that would be enough to cover all the damages.

Once your insurance liability limits run out you are on your own. You no longer receive any legal assistance from the insurance company and you are on the hook for any remaining damages that are awarded to the other parties in a law suit. If you don’t have enough cash on your own to cover the remaining damages the courts can go after any assets you have including vehicles, homes, savings accounts, etc.

If you do not have adequate liability limits for your current situation, you, your family and your financial security could be at significant risk. If you are not sure if your limits are enough or you have further questions about liability insurance, feel free to Contact Us, we would be more than happy to help!