If I smash into back of a newer luxury car(which cost $40,000 plus) and totals it and i only have a basic liability coverage which only covers upto $30,000 per accident for both medical and vehicle which is California DMV requirement, what happens?
2007-03-23 03:06:21 · 11 answers · asked by TJ Mcabe 1 in Cars & Transportation ➔ Insurance & Registration
That's the reason that you want to select the higher limit coverage. It really doesn't cost that much more.
2007-03-23 03:11:35 · answer #1 · answered by Anonymous · 2⤊ 0⤋
Please don't let most of the other answers scare you about this situation.
I'm going to make certain assumptions here.
1.That there are only your vehicle and "luxury" car involved.
2.That there are no injuries in the other car because that changes everything.
Here is how it plays out in the real world for claims involving property damage only.
You purchased the legal minimum limits. It's not a good move but not illegal and in MOST states you won't be punished for it. If the damages exceed your policy coverages, your insurance company will not pay out your policy limits unless they get a signed release on your behave that will state that that both the other car owner and the other insurance company will not pursue you for any balance.
If your company pays the policy limits without getting a release you then make a "Bad Faith" claim against your own company because paying a claim like this without getting a release is incredibly stupid.
The insurance company for the "luxury" vehicle will accept your policy limits in full settlement of a property damage claim against you once your company proves that you only have the 15K in coverage.
I've been handling claims for 20 years and have never gone after somebody in excess of their property damage limits. I have never paid a claim like this one without getting a release signed in favor of my policyholder.
2007-03-23 11:13:16 · answer #2 · answered by fighting saints 6 · 1⤊ 0⤋
The minimum limits in Calif. are $15/30/5. Meaning you have $15,000 per person $30,000 per accident for bodily injuries you cause and $5,000 for property damage. Your insurance will pay $5,000 maximum towards the damage to the luxury car. If the luxury car owner carries collision coverage on his policy it will cover the difference after your policy's $5,000.
The luxury cars insurance company will go after you to repay what they paid out on the claim. I've seen them do it many times. It's called subrogation.
2007-03-23 17:12:15 · answer #3 · answered by MARK S 2 · 0⤊ 0⤋
You reach into your pocket an pay the difference! That is the problem with minimum insurance. It gets you on the road but it is useless CRAP coverage in the real world. That is why we have $1,000,000 on the car that is used the least and $5,000,000 on the car that gets the most use and most exposure to risk.
2007-03-23 09:49:44 · answer #4 · answered by Fred C 7 · 0⤊ 1⤋
I'd write down as many details as possible even to the extent of using my mobile to take photographs and hand the details over to the owner of the vehicle or the relevant enforcement agencies
2016-03-29 00:54:11 · answer #5 · answered by Anonymous · 0⤊ 0⤋
A) You're screwed.
B) The guy will probably sue you for the uncovered amount you owe him, and...
C) You'll probably get a ticket & points on your license, which means your insurance costs will skyrocket.
2007-03-23 03:11:07 · answer #6 · answered by JeffyB 7 · 0⤊ 0⤋
Minimum liability limits are horrible. You would be responsible for the difference.
2007-03-23 05:59:59 · answer #7 · answered by Jessica S 3 · 2⤊ 1⤋
You will be held accountable for the rest. Most likely in the form of a lawsuit.
2007-03-23 06:00:15 · answer #8 · answered by Nate W 5 · 1⤊ 1⤋
ahh... im glad someone is seeing why getting the minimum limits is SOOOO BAD! if you choose to only get 15,000 worth of coverage... you owe the additional 25,000 out of pocket.
2007-03-23 03:23:34 · answer #9 · answered by Anonymous · 2⤊ 1⤋
your insurance will pay $15,000 for the accident and you'll be sued by the other party for the rest.
2007-03-23 09:09:28 · answer #10 · answered by CT 3 · 1⤊ 0⤋