| Auto
Insurance in a TORT Environment |
| |
| ASSUMPTIONS
MADE IN THE FOLLOWING AT FAULT ACCIDENT: |
| |
1.
You cause an accident for which you are solely liable
2. You have three passengers in your car who are hurt
@ $8,000 each |
| |
a. None of these people have health insurance |
3. You sustain injuries of $10,000
4. The person you hit sustains injuries of $10,000
5. The car of the person you hit is damaged @ $12,000
6. Your auto insurance contract carries the following
limits: |
| |
a. Liability limits of: 100/300/100
b. Medical Payment limits of: $5,000 (per person)
c. Uninsured Motorist limits of: $300,000 |
| |
| YOUR
INSURANCE CARRIER WILL PERFORM AS FOLLOWS: |
| |
1. Your Medical Payments coverage will pay a total of
$5,000 for the injuries of each
of your passengers (this leaves
a "balance" of $9,000)
2. Your contract will pay for the injuries to the other
driver and the damage to
his/her car |
| |
| YOUR
ARE AT RISK FOR THE FOLLOWING EXPENSES: |
| |
1. You could be sued by your passengers in order for them
to recover the "balance"
of their losses, since your Medical
Payments coverage only pays a total of $5,000 per
each of them
2. Your health insurance carrier will be tasked to provide
coverage for $5,000 of
your medical injuries that are
not covered by Medical Payments |
| |
| REMEDIES: |
| |
| Purchase
higher limits of Auto Medical Payments, and consider purchasing
higher limits of liability insurance |
