Auto Insurance / Car Insurance
Why minimum coverage equals maximum risk
If you've ever seen an insurance company advertising “cut-rate” coverage, “state minimum coverage,” or “barely-legal coverage,” this should raise red flags about how much – or how little – protection you're getting. When you look under the hood, what you're paying for is mostly just a false sense of security.
Consider this scenario:
- Driver A doesn’t see a stop sign, fails to yield and hits Driver B.
- Driver B’s vehicle is crushed. The insurance company determines the vehicle is totaled and places a replacement value of $24,525.00.
- Driver B suffers a serious injury, which requires emergency surgery ($32,000) and a one-week hospital stay ($15,723). After Driver B leaves the hospital, he must undergo extensive physical therapy (15 sessions @ $315 per session).
- Since Driver B cannot return to work for 8 weeks, he sues Driver A for lost wages (apx. $7200).
Trying to save money, Driver A had carried the minimum amount of auto insurance required by the state of Louisiana, which is $15,000 bodily injury protection per person and $25,000 property damage for a total of $40,000 per accident.
The court finds Driver A liable for all of Driver B’s expenses.
- Let’s see how the budget insurance worked out for Driver A:
- Total liability: $84,173
- Insurance paid: $40,000
- Driver A OWES: $44,173
This is why Charlotte A Ray Insurance feels the need to make you aware of greater than “state minimum” coverage options. Your family deserves better than barely legal protection! Ask a Charlotte Ray agent to show you coverage that gives you the sensible protection you need at rates you can afford.
Some of our options include:
- Personal watercraft
- ATV's / Off-road vehicles
- Classic Cars/Antique Automobiles