03/16/2023
From the insurance world: I hope to shed some light on the liability portion of your auto policy.
Today, a couple stopped in for some assistance because they were involved in a minor accident. They were not injured but shook up. The other party was not injured as well.
They exchanged information with the other party and we assisted them in submitting a claim to other other party’s carrier.
Listening to the call while on the speaker:
The adjuster on the phone was pleasant and explained the process to the claimant. During the conversation, he advised them that he was going to do a statement that was going to be recorded for the record.
Towards the end of the statement, the adjuster accepted responsibility for the insurance carrier and stated that they would pay for property damage plus the cost of a rental vehicle if needed.
I want to point out a statement that caught my ear, he stated that the policy only had $10,000 of property damage. They had two options: 1. If the total was below $10,000, they would pay the full amount. 2. If the total was over $10,000 they had to make a decision to turn it into their own carrier, pay the deductible and let the company go after the responsible party for the difference.
That is why paying attention to your liability limits is so crucial to protecting you from additional costs. $10,000 for a vehicle in todays cost of parts, material, and labor will not go far. Imagine if you had $25,000 or $50,000 in property damage and were responsible for an additional $15,000 or $20,000 in costs.
Bodily injury liability is a whole other matter that needs your attention. Some other time.
