I am friends with a PI attorney and and was recently visiting with him about liability limits, I asked him how much is “enough“.
His response: “completely depends on who the defendant is“.
He told me about a recent case where a colleague obtained a $4.3 million judgment against a driver who ran over a cyclist.
The insurance carrier immediately paid the policy limits–which was about $4 million short. Not a problem for Phil Mickelson, but, the rest of us probably don’t have an extra few million laying around.
I asked the attorney what the likelihood of the victims family actually collecting that money after the insurance money was exhausted, his reply: “in this case, it was easy, the family’s estate is very healthy.”
Here’s the deal folks: if you have assets… do like Under Amour and PROTECT THIS HOUSE.
Curious how liability limits work?? Here ya go:
If you currently have $50,000/$100,000/$50,000 liability limits on your auto policy:
👉🏼the first number means that $50,000 would be paid for bodily injury to each person;
👉🏼$100,000 is the amount of bodily injury that would be paid to all persons per accident total;
👉🏼$50,000 refers to the amount of all property damage that would be paid per accident;
So, if you seen any medical bills lately or the sticker price of a new Tahoe/Yukon $50k/$100k/$50k isn’t enough.
Pick up the phone and ask your insurance agent to increase your liability limits. After he picks him/herself up off the floor s/he will probably suggest $100k/$300k/$100k – resist. Ask for 5 times your current limit–don’t worry… it’s not nearly as expensive as you think. Now that s/he is in AFib and total disbelief… explain to him/her that you have assets you want to protect and you can’t believe he didn’t explain what s/he sold you. Shame him/her enough and they will probably give you a discount. 🤑
If you quoted $250,000/$500,000/$250,000 you’ll now have 5 times the liability limits as before and hopefully your asset are better protected from guys like this.
Want to really stroke out your insurance agent? Ask for a Umbrella quote.
Or… if you want a new Insurance agent that actually know what they are talking about? click here 👍