Those ads are so appealing. That cute little gecko just says click on and save 15%. Why not? The first bad mistake many people make is believing that the gecko wants what is best for you. What the gecko really wants is what is best for him.
The gecko wants us to buy the lowest amount of insurance coverage possible. That is best for the insurance company because it limits the loss for the company if you need to call on your insurance coverage because of an accident. In Virginia, the law only requires that you carry $25,000 in liability insurance.
Assume it’s raining, you do not realize water has puddled on the road and you slide into the oncoming lane hitting another car. Several persons in the car are injured and sue you for $500,000. The gecko says the cheapest insurance is the best and you have the minimum coverage of $25,000. All the gecko can lose is $25,000.
All you can lose is everything you own and everything you earn for the next 10 years. If you do not pay up, the state takes your driver’s license. If you do not pay up, a judgment may be entered against you that will be a lien on your house and all your property.
I would never carry less than $500,000 in coverage. Very seldom will there be a claim against you that is worth more than that. Of course, you want to be sure to protect your assets, your job, your income, and your family. More coverage does not cost a lot once you get the initial minimum coverage. That is money well spent. In addition, your coverage limits also help you recover in the even someone injures you in a car wreck and that person is uninsured or underinsured.
I am a trial lawyer who has made claims against hundreds of negligent drivers over the years. Most of them were people like all of us, good people who just made a momentary mistake, but the result was the serious injury of another person. It is shocking to me to find that many of those people only carried minimum insurance coverage and thus were exposed to excess personal judgments.
Our website has frequently asked question videos for your informational use. We give away this information because you deserve to know what the law is.
Posted by A. David Hawkins, Esq.