If your spouse were badly injured in an auto accident on the slippery roads today, and couldn't go back to work for several months--costing you thousands of dollars in income and tens or hundreds of thousands of dollars in medical bills--how much would you sue the other driver for? Or God forbid, your husband or wife were killed on Highway 6 today by someone talking on their phone, how much would you sue them for?

Now what if you are the driver at fault in that accident...how much will you be sued for? Do you have enough liability insurance to pay for the damages?

As scary as that may sound, about 60% of drivers in Texas that do have auto insurance (1 in 4 drivers don't have liability insurance at all in Texas), only carry the state minimum limits of 25/50/25. What does that code mean though?

The first number, "25," means that if you cause an accident, the most that your insurance company is going to pay for medical bills is $25,000 per person. If you hit someone and they have ER bills, rehab expenses, lost wages, or God forbid--funeral expenses, do you think that's enough? Do you know a good lawyer?

The second number, "50," means that the most your insurance company will pay for the entire accident is $50,000. So if there are four people in the car that you hit, and the first person requires $25,000 or more in medical bills, and the second person requires $25,000 or more in medical bills, there is no more insurance available for the other two passengers that you hit. Again, do you know a good lawyer?

The third number, "25" means that your insurance company will only pay for $25,000 in property damage. So...aim for the Honda, not a Lexus. And if you hit a Lexus? Or you cause a 3-4 car accident? Again, do you know a good lawyer?

Higher limits of liability do not cost that much more in monthly premium, but it sure provides you with a lot more protection. Also, for about $10-12 more per month, you can add a $1 million umbrella policy, so that if you do hit someone (or someone is injured at your home), you've got an extra $1 million in coverage, and my company will pay for your legal expenses as well.

If you don't know what your limits of liability are, or just want someone to take a look at your auto insurance exposure, give me a call at 979-314-1512. We may even be able to provide you with more coverage AND save you some money.



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Dallas Shipp | 979.314.1512 | dallas@theshippagency.com | BCSinsuranceguy.com

Uhm. Way to scare everyone.

I thought this was gonna be a fertilizer question.

not trying to scare anyone. Just turning numbers into reality.

There are lizards and whatnot out there that will try to sell the cheapest policy available, just to save you premium. Progressive even has this new promotion of "tell us what you want to pay and we'll build you a policy" which sounds great for marketing, but many clients that I've met with had NO IDEA about their exposure to lawsuits if they were involved in an accident.

As someone that is responsible enough to carry adequate insurance I thank you for posting this. I have been hit by people without insurance and without enough insurance and both times MY insurance had to cover the difference.

People who are scared by this are the same ones that are scared of talking about life insurance for their loved ones.

Nice. Someone pulled the "holier than thou" card on a sponsor thread!

I don't know about holier than thou...I think it was just an honest response.

If you carry uninsured or underinsured motorist coverage, you're paying extra premium to insure YOURSELF so that if you're hit by someone without insurance, you would be able to repair your car and pay for medical bills.

If everyone carried higher limits of liability, we would all save hundreds of dollars each year because we wouldn't have to pay for uninsured/underinsured motorist coverage.

Insurance Guy,

Good info!

Do not worry about the critics, those "types" are always going to find something to complain about.

If you do get "extra" business or changes in policies, good for you! That is how a free enterprise economic system is suppose to work!

I agree with carrying adequate insurance coverage, sir. I was commenting on another post.

[This message has been edited by AgFan1999 (edited 2/11/2010 12:53p).]

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I thought this was gonna be a fertilizer question.

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Crap, that is the first thing I thought when I saw it too.

Great post Dallas. That's reality and you can't exactly sugar coat it. Thanks for the valuable info!

Based on the thread title, I was thinking someones measurements hehehe

Tell me why when I had a minor accident that was my fault my insurance went up because of the accident? My insurance company said it was just for 6 months to pay for the accident. What the hell are my monthly premiums for that I have been paying this company for 30 years going for. First one on my record that was my fault and it was a minor fender bender in a parking lot no less. I think it's a rip off and no matter what the insurance company is only there to make big money as is everyone else. But I have heard of so many people that get cancelled or rates raised real high because of a minor wreck or speeding ticket. There is no loyalty anymore, it doesn't really matter how long you have been with the company, once you have an accident or two then you become high risk and they can you. Then I have a neighbor kid shoot a window of mine with a bb gun, guess what? Well sir your deductible on that is $1500. Fortunately the kids parents agreed to pay for it. I just have a hard time with justifying insurance although I am insured heavily in home, auto and life.

[This message has been edited by Koob (edited 2/11/2010 6:20p).]

This was a very informative post. Thank you! So many small details that most people don't know.

We need some threads started, something along the lines "50 things your insurance agent won't tell you" or your doctor, or your mechanic, etc, etc. Reader's Digest has these and they're very informative. Just stuff you never think about.

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Tell me why when I had a minor accident that was my fault my insurance went up because of the accident? My insurance company said it was just for 6 months to pay for the accident. What the hell are my monthly premiums for that I have been paying this company for 30 years going for. First one on my record that was my fault and it was a minor fender bender in a parking lot no less. I think it's a rip off and no matter what the insurance company is only there to make big money as is everyone else. But I have heard of so many people that get cancelled or rates raised real high because of a minor wreck or speeding ticket. There is no loyalty anymore, it doesn't really matter how long you have been with the company, once you have an accident or two then you become high risk and they can you. Then I have a neighbor kid shoot a window of mine with a bb gun, guess what? Well sir your deductible on that is $1500. Fortunately the kids parents agreed to pay for it. I just have a hard time with justifying insurance although I am insured heavily in home, auto and life.

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Sorry to hear about your poor experiences, but it really depends on the company that you're with. For instance, Nationwide will not increase your rates for "minor" fender benders (up to $1250 paid), and there are even riders you can add to the policy that allow you to have one major accident and get a moving violation in a three-year period without your rates going up. Of the 30 companies or so that I work with, I don't know of any of them that would ever drop someone from auto coverage for 2 wrecks. It's typically 3+ wrecks in a three year period, which yes, is considered high risk.

As far as the homeowners policy, yes, your homeowners deductible is going to typically be $1,000 or 1% of the insured amount. It's really intended to be there for fires, tornadoes, major water damage, thefts, etc. Homeowners insurance is not intended for small amounts of damage. There are differences from one company to another as well. You can have a lot less coverage with some companies and keep your premium down lower. Or you can pay more, and have more coverage. It's definitely not the same from one company to another.



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Dallas Shipp | 979.314.1512 | dallas@theshippagency.com | BCSinsuranceguy.com

You really thought your home-owner's insurance was going to pay for a broken window; jebus christ dude.

Windows won't be more than 400 bucks, suck it up and pay it or sue your dumbass neighbor in civil court for the damages.