Recently I’ve had two customers who were involved in accidents where the other party was at fault and the vehicles were totaled. The total amount of each vehicle was approximately $25,000. In both cases, the other driver had only state minimum liability of $10,000 in property damage. Both Carriers advised my clients to file a claim with their Farmers auto insurance.
In the first incident, my client stated they were advised by the other Carrier that there was not enough coverage and to mitigate their losses. Mitigate? That means to make less painful. They not only had to pay their $500 deductible and their medical costs but haven’t received any help from the other Carrier and it’s been over 2 months.
In the second incident, the other carrier would not even allow them to file a claim without having the other driver’s address when that information is not available until the police report is completed which takes approximately 10 days. The carrier knows this and it’s their way of getting you to file the claim with your own company. This customer had to pay a $1000 deductible and can only hope for reimbursement.
This is the scary part!! Farmers will hopefully recover $10,000 from the other company this will leave $15,000 owed by the at fault driver. This can result in a judgment against them and wage garnishment. This is an example of how important it is to carry higher limits than the state minimum of 15/30/10. By the way, that limit was set over 40 yearsw ago when car prices were much lower.
I am proud of how Farmers stepped up and resolved these claims within a few days. They were understanding, helpful and fair on the settlement price of the vehicles. If you’re not sure of what your auto insurance coverage limits, call 254-7774 for a review today!