Insurance Coverage, Pay now or Pay Later!
I wanted to share a recent experience that I had with some clients, the names are changed to protect them. James & Jenny had recently given a family car to their coming of age daughter Melissa who was moving out on her own. When it was time for Melissa to purchase Insurance for her car she decided to go with a company that promised super low rates and sold her on a monthly payment rather than a proper policy, her coverage… State minimum 15,000/30,000 Bodily Injury 10,000 Property Damage. All is well for a while but late one Sunday evening while coming home from a day at the lake with a car full of friends Melissa was hit head on by a drunk driver, severely injuring all occupants of the car. Two of the girls were airlifted to local trauma units and the others where taken by ambulance to local hospitals, 3 of the girls were treated for various injuries, nothing serious, however Melissa has gone through several operations to repair a shattered Ankle, a broken foot, a broken hand and a punctured liver. Due to the severity of her injuries she will require medical care for the next 4 to 6 months. Thank God the injuries were not life threatening.
Now you can imagine between the medical bills, co-pays, Ambulance fees, damages to the vehicle, towing and storage costs that this unfortunate event will probably cost somewhere in the neighborhood of 500,000 to 750,000. The drunk driver responsible for the accident had state minimum coverage so the Maximum the Insurance Company has to pay out is 30,000 which will only cover 7,500 per person. The burden of the rest of the financial responsibility will be left to Melissa, the passengers and their families to clean up the mess of an accident that was not their fault!
So, when you are choosing an Insurance company or policy, PLEASE do not make monthly payments your number one priority! Make sure that you are properly covered, and getting the best coverage for your money! Ask friends and family to refer you to someone that they trust to sit down with you and tell you what you NEED to hear so you can come to wise decision regarding your Insurance needs. There are ways to protect you and your passengers so that in the event you are severely injured in an accident that is NOT your fault you can rest assured knowing you will be covered!