Many people complain about liability insurance. In fact, I was talking to a lady today that had a little over $114,000 in claims (of which $100,000 was body injury) complain about the price of insurance. She told me that insurance was a rip-off and I asked, what would have happened if you personally would have had to pay $114,000 out of your pocket. She made up some excuse but the reality is she would have been in deep financial trouble as this nurse would have been getting her wages garnished!
Nobody likes to pay for auto insurance. But we all make mistakes and do need it. Liability insurance is needed so that when you hit someone, they can receive medical treatment and you can protect your assets. Yes, in Florida you can be protected on your primary residence through the Homestead Exception. But what about your wages and cash in the bank?!?!
For pennies on the dollar, you can protect your assets with higher auto liability limits. An claims person in Florida told me that coverage of 10/20 on bodily injury would not even cover the cost of the attorney. Do you want to place you and your family at risk of losing a lot more than the cost of better coverage? If so, please rethink that position!
If you have no assets to protect and are making good money, they can garnish your wages. If your primary residence is protect, THEY CAN STILL put a lien from a judgement on it. Major problems when you go to sell. Either you will be forced to live in that home until the equity is built up or all the extra cash will be taken at closing. Your choice!
“The news was even worse for a Florida driver. His car collided with a motorcycle at an intersection, killing the bike’s driver. A jury ordered him to pay the driver’s estate $8 million. He had purchased only $100,000 of insurance.”
What can you do to protect yourself? Get higher bodily injury limits on your Florida auto insurance policy. Possibly, even consider getting a personal umbrella policy. Which can cover you up to $5 million (depending on what you have to protect). An accident that causes a death could easily run you at least $1 million in Florida.
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