The Dangers of Deep Discount Auto Insurance

 Posted on October 10,2017 in Car Accidents

You have probably seen commercials for car insurance advertising the benefits of having the state minimum coverage. While bare-bones car insurance plans are often less expensive and get drivers the legally-mandated car insurance their state requires, they leave a lot to be desired. Having even a very small amount of coverage is better than not having any automotive insurance, but it may leave drivers vulnerable. Minimum coverage is often not enough protection in the event of an accident.

Cheaper Is Not Always Better

Although a cheaper option, there are many problems that can arise when a driver only has the minimum amount of car insurance. For instance, if the driver is in an accident which injures another party, he or she will probably have to pay damages. If the driver’s insurance does not pay the complete amount he or she owes, the injured party can pursue damages against him or her until the debt is paid. The costs can add up quickly. An at-fault driver can be required to liquidate his or her assets, including their car and home in order to pay the debt. In some cases, the driver’s wages may be garnished.

Liability insurance reimburses a person other than the policy holder for personal injury or property damage. The Minimum Liability Insurance Requirements in California are

• $15,000 for injury/death to one person;
• $30,000 for injury/death to more than one person; and
• $5,000 for damage to property.

It is easy to see how expenses following an accident could quickly exceed these amounts.

Have You Been Injured in an Accident?

There are two primary dangers when drivers only have the state minimum auto insurance. First, if a driver does not have enough coverage and he or she is at-fault in a car accident, he or she may be faced with paying expensive damages out of pocket. The second danger is to a person who is injured by a minimally-insured driver. Sometimes, when a negligent driver only has the state minimum car insurance coverage and the injured person does not have underinsured motorist coverage (UIM), an injured party may have to sue the driver to get the compensation they deserve.

If you have been injured due to another party’s negligence, The Law Offices of John Garvey III will aggressively pursue your case, file claims to hold the negligent party responsible, and get you the financial compensation you need. We work with clients to help them receive reimbursement for lost wages, medical expenses, pain and suffering, and more. Call an experienced San Jose car accident lawyer today at to schedule a free initial consultation by calling 408-293-7777.

Sources:

https://www.bankrate.com/finance/insurance/is-minimum-car-insurance-coverage-enough-1.aspx

https://www.dmv.org/insurance/compensation-for-auto-accident-personal-injury-claims.php