Question:
If I smash into back of a newer luxury car(which cost $40,000 plus) and totals it and i only have a basic liability coverage which only covers upto $30,000 per accident for both medical and vehicle which is California DMV requirement, what happens?
Answers:
Where or how can I find out about traffic tickets?
That's the reason that you want to select the higher limit coverage. It really doesn't cost that much more.Anyone know wheres I can find the California driving written test in Vietnamese?
A) You're screwed.B) The guy will probably sue you for the uncovered amount you owe him, and...
C) You'll probably get a ticket & points on your license, which means your insurance costs will skyrocket.
ahh... im glad someone is seeing why getting the minimum limits is SOOOO BAD! if you choose to only get 15,000 worth of coverage... you owe the additional 25,000 out of pocket.
How much is insurance for a new lamborghini?
Minimum liability limits are horrible. You would be responsible for the difference.How can I have a multi axilled heavy duty vehicle liscense?
You will be held accountable for the rest. Most likely in the form of a lawsuit.How long can I use a foreign registered car in the UK before registering/taxing it here?
your insurance will pay $15,000 for the accident and you'll be sued by the other party for the rest.How can i schedule a written exam in driving a car in montreal?
You reach into your pocket an pay the difference! That is the problem with minimum insurance. It gets you on the road but it is useless CRAP coverage in the real world. That is why we have $1,000,000 on the car that is used the least and $5,000,000 on the car that gets the most use and most exposure to risk.Cheapest women car insurance on a provisional?
Please don't let most of the other answers scare you about this situation.I returned a rented car from enterprise and later was told the car was damaged , who shuold blame?
I'm going to make certain assumptions here.
1.That there are only your vehicle and "luxury" car involved.
2.That there are no injuries in the other car because that changes everything.
Can I renew my registration if the car is not in my name?
Here is how it plays out in the real world for claims involving property damage only.
Can Poles drive Heavy Goods Vehicles in the UK with just a tractor license?
You purchased the legal minimum limits. It's not a good move but not illegal and in MOST states you won't be punished for it. If the damages exceed your policy coverages, your insurance company will not pay out your policy limits unless they get a signed release on your behave that will state that that both the other car owner and the other insurance company will not pursue you for any balance.
Can I insure two cars and have a named driver on one of them?
If your company pays the policy limits without getting a release you then make a "Bad Faith" claim against your own company because paying a claim like this without getting a release is incredibly stupid.
Cheap moped insurance company?
The insurance company for the "luxury" vehicle will accept your policy limits in full settlement of a property damage claim against you once your company proves that you only have the 15K in coverage.
What are some good fuel card programs in Australia?
I've been handling claims for 20 years and have never gone after somebody in excess of their property damage limits. I have never paid a claim like this one without getting a release signed in favor of my policyholder.
The minimum limits in Calif. are $15/30/5. Meaning you have $15,000 per person $30,000 per accident for bodily injuries you cause and $5,000 for property damage. Your insurance will pay $5,000 maximum towards the damage to the luxury car. If the luxury car owner carries collision coverage on his policy it will cover the difference after your policy's $5,000.
The luxury cars insurance company will go after you to repay what they paid out on the claim. I've seen them do it many times. It's called subrogation.
You are responsible for the difference.
More Questions & Answers ...
This article contents is post by this website user, CarQnA.com doesn't promise its accuracy.