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Min insurance limits with 80+k vehicles

Discussion in 'Auto Accidents, Injuries' started by Redemptionman, Dec 12, 2021.

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  1. Redemptionman

    Redemptionman Law Topic Starter Active Member

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    This applies to all states, when insurance companies write policies on 80+k vehicles and the owners only want state min. liability limits, does this ever send off any red flags?

    I have seen or heard about people buying very expensive rides running state min. insurance. Totaling out their 80+k vehicles on either other objects or people and getting said insurance company to write them one expensive check just to only be on the hook for minimum liability of 10-15-25? depending on state.

    Does this not raise any kind of questions or flags? Is it the way things work or how to work the system and hide behind state min. liability laws.
     
  2. army judge

    army judge Super Moderator

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    Do you understand what state minimum liability laws attempt to do?

    Even if the insured had a $500,000 automobile, not one penny of the MINIMUM liability payout would end up in the pocket of the insured.

    State mandated liability minimums attempt to protect a party that the insured damages.

    The problem today is that the laws may have worked 60 years ago, but not today.

    That is why a smart motorist desirous of protecting what he/she owns carries a minimum of 100K/300K liability, as well as comprehensive, along with other additional coverage for most contingencies.

    Take me, for example.

    My wife and I carry a $250K/$500K liability, uninsured, under-insured coverage.
    Neither of us, my wife or me, have had a traffic citation or automobile collision in over 50 years.
    I also have a $3,000,000 umbrella policy for other contingencies.

    Insurance is a very personal decision.

    What works for Willie, Mamie, and Jenna; will probably not be right for Alfred.
     
  3. Redemptionman

    Redemptionman Law Topic Starter Active Member

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    Naw, Army Judge you do not see what I am saying. I wasn't specifically talking about the liability limits. I was referring to people who have expensive rides 80+k and can for an example run into a building. Well they get a 76k check for their ride (since it was totaled) while the business owner experienced a 100+k loss and all they are on the hook for is 25k+ because they only have those limits while the business owner is picking up everything over 25k either on his personal insurance or out of pocket.

    Since it appears they have no assets, they appear tort immune and so the other store owner's insurance will not go after them at all. All their insurance pays is 25k and the poor person picking up the pieces of his store front is SOL.
     
  4. adjusterjack

    adjusterjack Super Moderator

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    Not really.

    I can't imagine that anybody with an $80,000 vehicle is buying only the minimum state required limits. But if you say it happens, OK, I'll run with it.

    Sure, it's bad news for the victims who get hit by an underinsured driver. But as long as he has the state required limits and is paying the appropriate premium for his $80,000 car neither the legislature nor the insurance industry would seem to care much.

    I can't divine your point here. Are you saying that state's should mandate higher minimum limits? Maybe so but you reach a point where lower income people go without insurance if they can't afford the higher limits. And that's a bad solution to the problem.

    The store owner you mentioned isn't SOL if he has the proper insurance to cover the damage to his property.

    Injured people who have sufficient Underinsured and Uninsured Motorists coverage aren't SOL either when it comes to compensation.
     
  5. Redemptionman

    Redemptionman Law Topic Starter Active Member

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    Yes, I can not believe this happens but it does, if the borrows credit is good enough to get expensive vehicles all they have to carry is the state min insurance. So you have a Bentley rolling around with 25k liability limits, total said Bentley as you have made 2 payments. You get said Bentley paid for and the person who you hit and/ or did the damage to is left picking up the pieces. This happens everyday some where, as said insurance is personal and what you carry is what you carry. I can not believe commercial lenders/ banks allow people to buy these type of vehicles at state min levels. They should have to at least carry the amount of liability equal to the price of the vehicle.

    No you work hard for what you have, some people out there know how to work the system. In housing you have to justify where your down payment came from. Hence, why we do not have drug dealing busters living in multi million dollar homes although I assume some do.
     
  6. adjusterjack

    adjusterjack Super Moderator

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    Because they don't give a crap about the liability limits. They care only that the loan gets paid off if the car gets wrecked.

    A lot of things in this world should be but aren't, and likely never will be.
     
    army judge likes this.
  7. Redemptionman

    Redemptionman Law Topic Starter Active Member

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    True statement, my friend.

    True Statement.
     
  8. army judge

    army judge Super Moderator

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    Reality check, mate, an $80K whip might be big money to Ethel, but chump change to Bertha.

    Things important to Bobby, mean nothing to Pablo.

    Never rely on any governmental agency to protect you or your stuff.

    I don't care what others do, because I've taken the necessary precautions to protect me and mine.

    That said, things are relative my friend.

    One person dreams of making $50K, while the dude or dudette earning $50K thinks earning $200K would solve all of her/his problems.

    I also agree with @adjusterjack 's conclusions regarding the poor choices others make.

    There are thousands of uninsured, unlicensed drivers all around you. In fact, many of them drive hopped up on narcotics, dangerous drugs, or pints of booze. Others get their buzz from smoking or eating "loco weed".

    To paraphrase old Smokey the Bear, “Only you can protect yourself and your stuff."
     
  9. adjusterjack

    adjusterjack Super Moderator

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    Or, to quote me, "Self preservation is nobody's business but your own."

    :D
     
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  10. Redemptionman

    Redemptionman Law Topic Starter Active Member

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    Yeah, well. It depends upon how much fight you have in you. These companies are not going to magically give you UIM for being on the hook for being hit by a state min. driver. It is adversarial and depending on the insurance company becomes tug of war to get the UIM. They don't just say here is your money.
     
  11. Zigner

    Zigner Well-Known Member

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    Speculation.
     
  12. adjusterjack

    adjusterjack Super Moderator

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    That's true, to the extent where every kind of insurance requires you to prove your loss.

    Beyond that, I won't deign to argue with a disgruntled consumer griping about the evil insurance companies.
     
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  13. Redemptionman

    Redemptionman Law Topic Starter Active Member

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    Yeah, sigh

    Spoken like a true insurance man. The whole part of you pay for the insurance and the DUTY is to your insured NOT the 25k insurer and its policy limits.
     
  14. Zigner

    Zigner Well-Known Member

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    You've been hurt. It almost seems that you have been so deeply hurt that you need therapy.
     
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  15. adjusterjack

    adjusterjack Super Moderator

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    Yep, that's me. INSURANCE MAN. I have the tights, the cape, and a big "I" on my chest.

    Whatever.
     
  16. PayrollHRGuy

    PayrollHRGuy Well-Known Member

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    @Redemptionman

    You seem to not understand how auto liability insurance works. The state couldn't care less how much you insure your car for or even if you insure it at all.

    What the state mandates is that you have insurance to cover other people, cars and other property that you might damage with your car.

    That said the company that finances your car may and usually do require that you have enough insurance to cover any damage or loss to cover what they have financed.
     
    Red Kayak likes this.
  17. Redemptionman

    Redemptionman Law Topic Starter Active Member

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    Love how you all say how posters don't understand anything. Awesome.

    Tell you what, I do not know how much insurance you carry. I do not care but lets say you carry 300/500 and 300 UIM and work hard, have assets. You get hit by a state min insurance driver who only carries the state min. They have good credit so they are driving a 60k vehicle but show no tangible assets that you can get in recovery of your damages. Lets say they leave you a quadriplegic, now what do you think your insurance company with 300k is going to do? They are not going to magically say here is your money sorry for your losses. You more than likely will have to sue everyone you can.

    You have medical bills that go to collections, you have a vehicle that is the shop for months with a payment, and you may have to file bankruptcy. Now your own insurance company will use all that to limit your own recovery for what you paid for while working hard to limit the determination of what you get.
     
  18. Zigner

    Zigner Well-Known Member

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    Speculation.
     
  19. PayrollHRGuy

    PayrollHRGuy Well-Known Member

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    The value of their car has nothing to do with my injuries.
     
  20. army judge

    army judge Super Moderator

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    Your hypothetical was the reality faced by now deceased son.

    On behalf of my wife and his daughters I successfully litigated a multimillion dollar lawsuit.

    It resulted in a trust fund for our granddaughters and a special needs medical trust for our son.

    He lived his last ten years in a coma.

    There are always remedies available, even for the most dire circumstances.
     
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