HOW DO INSURANCE LIMITS WORK?

The minimum insurance limits in Washington are $25,000/$50,000.  But what does that really mean?

It means that if a driver with that coverage is negligent the most any one person can recover is $25,000 and the most that the insurance company will have to pay out is $50,000.

Those limits may comply with law but are woefully inadequate.  Especially when there are lots of injured people.

For example, an accident in Seattle this week involved two cars full of high school students.

One Cleveland High School student was listed in serious condition and three others were in satisfactory condition at Harborview Medical Center Friday evening following a crash Thursday morning on southbound Interstate 5 in South Seattle.

They were among six male students from the Seattle school who were injured in the two-car crash at about 8:15 a.m., just north of the Boeing Access Road. Altogether eight teen boys were involved in the crash.

How far does $50,000 go when it has to be divided up between three, four, five, six or even more people?  Not very far.

Two things: (1) we need higher insurance limits and (2) buy as much uninsured/underinsured motorist coverage as you can just in case you or someone in your house is involved in an accident like this one.

Leave a Reply

Your email address will not be published. Required fields are marked *