January 01, 2025, a new Senate Bill 452 was passed to increase the state minimum
requirement for bodily injury from $30,000 per person / $60,000 Total per accident/
$25,000 for property damages to $50k/$100k/$50k. What does that mean for the
average driver? Yes, Premium increases, but much more.
1)There's no such thing as "Full Coverage". The increase will assist in helping you pay
medical damages to the "other person" in the event you cause the accident. Let's use
the example below:
You hit John in an accident, and he has to go to the Emergency room, admitted to the
hospital to have surgery on his leg, and then physical therapy to regain mobility in his
leg.
You have two choices: You can pay for those costs, or YOUR insurance company can.
Not to mention, you will also pay for the time John missed work due to the accident and
pain and suffering. John also has 3 years to settle with your insurance company. John's
lawyer settled with your insurance company two years later for $65,500. Your insurance
will only pay John $30,000.
The new law gives you an extra $20,000 to help with those costs. The remaining
$15,500 ($65,500-$50,000=$15,500) will come from your pocket. You would have to set
up a payment plan, sell your assets, or have wages garnished if you cannot pay in full.
2) The coverage to protect YOUR family INCREASES from uninsured and underinsured
drivers too. The insurance information institute recorded that 6.5%-10% of drivers
operate vehicles without insurance coverage.
We all know what it means to drive without any insurance. However, the best way to
describe an Underinsured driver is by using the same example above with John(but in
Reverse).
If your hospital bill and settlement came to $65,500 in bodily injury coverage, and John
currently has $30,000 per person, he is considered underinsured.
So, this also works in your favor. This coverage for your family allows you to be paid out
by your insurance company while your insurance company sues John's carrier.
It's essential because waiting for someone's wages to be garnished or to sell assets
could be over several years.
3) The coverage per accident goes up by $40,000(from $60,000 to $100,000). This
coverage also works the same way as per person, but this is the amount the insurance
company will pay out in Total just in case more than one person is in the car.
Using the same example, what if John was in the car with his wife and children? Having
an extra $40,000 saves you from going into a massive amount of hardship. If someone
is underinsured and uninsured, they can be court-appointed to sell their assets, such as
their home, and have wages taken out of their pay for many years to make the other
person whole.
4) It's no secret that property values have more than doubled over the last few years.
Cars included. Raising this coverage limit gives you an extra $25,000 to pay for
someone's property. It's used for car damage and other property damages such as
commercial (a business) or residential (someone's home) property.
Overall, it costs more, but it brings awareness to those who don't understand their
coverage and changes how people are marketed to solicit business. Yes, a company
can save you over 30% in 15 minutes or less, but do you know what you have for
coverage when an accident happens? If not, scheduling an appointment with an agent
to understand those risks is an approach to getting covered appropriately.
Call or Text Now to 1-888-334-5414 to get your questions answered.
Do you know what your Auto Coverages Are?
YES
NO
References : Senate Bill
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