Divorce A Good Time To Revisit Auto Insurance
Tim: The liability extends for instance if they have low policy coverage of maybe $15,000 and then the injuries perhaps exceed…
Tim: …that they could go after. They reach out some other liability there?
Jon: Right, so, you bring up a good point which is the coverages. And when you go through a Divorce, most likely, you haven’t looked at your coverage for a few years.
And the coverage really should match the assets you have.
So if you know you have a million dollars with your assets, you should probably have the million dollars with the liability to protect that.
So as you separate and then your assets makes many change in a certain area. So there were many changes.
So it’s a good time to revisit. But to answer your question, about having lower limits like that you’re absolutely right.
So what happens is in my scenario where I have the accident, if I have little limits just because if someone sues me for a $100,000 and I’m carrying a State minimum like about $15000. I’m not personally liable for that extra $85,000.
If my wife is still registered on my car now, she just became liable for that, my ex-wife she just because liable for that as well.
Jon: So really it’s a good time especially if somebody else has been no one taking care of your insurance or you haven’t looked at your insurance in awhile, it’s really a good time to revisit those coverages and make sure you have the liability that you need.
Another piece of that is the uninsured mother’s support. So if for example, if you hit me and you don’t have enough insurance or you don’t have any insurance, my policy if I have the proper protection will still protect me as if you would have that insurance.
So that’s important too. So if you’re going to the review, that’s really good to go with it with a broker or agent and goes through all your policy coverages.
Make sure you understand what they need. And pick the levels that are right for you.
Tim: So if you had a million dollar that worth combined within you and your spouse and you’re going to have the assets, let’s say now $500,000 you’re not going to want that lower potentially?
Jon: You could. It’s one thing to consider especially in your time of saving cost and they will tell you that the cost different is very minimal.
In those kinds of situations and the other thing is it’s not all your assets, it’s what your future income is.
So you may not have a lot of assets but you’re making a hundred grand a year, then in California they can come after a portion of that.
They can garnish your wages. So one way or another it’s still a good idea to just kind of assess how much you have, how much you might be making and then swap the proper coverages.
And let’s say going through Divorce is a perfect time to think about those kinds of situations.