Buying a z. Sky high insurance???

Zemurray

I think they are referring to any potential liability claims, IE you are taking your girlfriend for a ride, run a red light, get t-boned, she gets injured significantly. Most medical on car insurance would be about 25k, but then the girlfriends medical bills would be 200k, which her family could sue your insurance to cover. If you get that liability too low, then when they run out of insurance coverage, your personal assets will be sold to cover the difference. The insurance company won't start paying out of the bodily/property portion without a lawsuit, once the lawsuit is started then you are liable for the judgement whatever it is. If the judgement is 500000, and you only had 50,000 in coverage, then you owe 450,000 out of pocket.

Thats the basic idea of what they are saying I believe.

RunNgun

Ah ok that makes sense. I guess the way I see it, even the 100k coverage could still be a drop in the bucket for any kind of damage, and being on the hook for half a million or a quarter million would still leave me screwed, so I might as well declare bankruptcy if someone sues me for everything I've got, which is pretty much the Z and a flat screen TV

theDreamer

Bankruptcy laws were changed 1-2 years ago, which most changes will carry over most debt even after bankruptcy is declared.

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Red__Zed

I think if you file Chapter 7 they will not be discharged, but Chapter 13 will discharge them. Could be wrong though.

theDreamer

Yeah, I am still not 100% on all the changes and what does what now.

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Red__Zed

Regardless, declaring bankruptcy is not a good strategy.

RunNGun: If you don't carry high liability limits, you put your other assets at risk. Guys that don't have much are "collection proof", and it's hard to find a lawyer to go after them on a contingency basis.


With current liability laws, 300k is a pretty safe limit. It's rare that you are found fully at fault for anything, and you can only be ordered to pay a percentage of the judgement value based on how much was your fault (ie, 500k judgement, 50% your fault, you pay 250k). I play it a little extra safe by adding a 1M umbrella on top--because the world is a crazy place, and you never know what may happen...and it's not worth mortgaging your future to save $25 a month.

b1adesofcha0s

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