Why do I need that much liability?

Julie in Portland emailed us regarding liabilty. She's driving a late model car and its not worth much so she doesn't see the need for anything more than the amount required by the state of Oregon, carrying the minimum is never a good idea. I've heard it all; the car isn't worth anything, I don't drive it that often, I'm a safe driver, none of them are a good reason to not carry as much liability as you can afford.

Lets say for example Julie is driving through downtown and she's hit in the rear by another car that didn't see her brake lights, no problem right? In this case she might be ok, there's 25,000 medical for her and a total of 50,000 on that policy so hopefully she only has one passenger and neither are hurt badly. Sure, the state allows you to go after them for the rest of the money but how long is that going to take and how many bills are going to pile up in the meantime if they're unable to pay? Now lets say that same car runs a red light and strikes Julie on the drivers side of her vehicle while she's traveling with 3 of her friends and then flees the scene. Now where does that leave Julie and her friends? Her policy is going to pay that same 25,000 per person and 50,000 total and the rest is going to be their responsibility unless they can prove who the other driver is. What if she didn't have friends in the car but her children instead? Don't your friends and family mean enough to you to carry enough liabilty to protect them?

The same scenario can happen is Julie is the driver at fault, and she will find herself being asked to pay the balance that the auto policy doesn't. Do you want that to be you? Add into that, what if the car you hit isn't a late model car worth about 5,000? What if its a brand new BMW and you total that? There's another hand out asking for money. By carrying higher liability you protect yourself even if you're not at fault in an accident. If Julie was carrying 250,000 per person and 500,000 per loss after the at fault drivers policy paid out her own would cover the balance up to those higher limits.

I'm sure a few of you are mumbling under your breath about now, its the at fault drivers responsibilty to pay; true but what if they can't pay it all at once? Those hospital bills are still going to arrive and you're still going to have to replace that car if the payments come within a month of over a few years. Does this make you think twice about those state minimum coverages? For extra protection above and beyond your auto policy there are also liability umbrellas, these are often thought of for people who earn a lot therefore have a lot to lose but they can benefit anyone. They're available in 1 million dollar increments and cover the face amount over and above the liability on your regular policy. This includes homes, recreational vehicles and boats. Note that not all umbrella policies are created equal just as all auto policies are not, coverage varies so you should always ask. Not sure what to ask? Email us and we'll send you a list of basic questions to ask to make sure that "great deal" you're being offered is really as great as it looks. With Umbrellas the important coverage is Un-Insured and Under-Insured Motorist coverage. Not all Umbrella policies have it; in fact, most companies don't offer it at all. Isn't your family more important to you that a stranger you meet on the street? Why would you pay for more coverage if you injure him but not your family?

As always, please send Email any insurance related questions to our office, we'd be happy to help and review your current coverage with any carrier.