...Ask yourself, Do I Know My Limits?
You should know that insurance in any form or fashion is a tricky business! Why?? Because it mainly has to do with one's interpretation of a policy contract, which leaves a lot of room for gray areas of when & how your policy applies to a particular claim. But as you will see, the insurance limits on your policy has far less potential of being ambiguous, because like Weezie said, "Numbers don't lie!" So it is imperative that you know your limits, or you may find a heap of trouble when you least expect it.
It's SUPER IMPORTANT that you know your policy limits! An accident can occur at any time and it's always best to be prepared, in case something serious happens. I was speaking to a homie of mine, a while ago-around the time I was starting out in the insurance business and he was telling me that he was in an accident, but it was a "No-fault." I then asked for the details on how the loss occurred because I was curious. So he said, "...I was driving down the road and it was raining, and my car hydroplaned and I lost control of my car and I hit a pole and a tree...no fault, right?"
I felt bad, but I had to school him & explained that there is no such thing as a single vehicle no-fault loss, especially in that instance, since my homie told me he driving the speed limit, but driving the speed limit isn't safe enough for the weather conditions. I checked my homie's policy and he was definitely deemed at fault for the accident by his insurance carrier. (Even though it was raining and even though there were no other vehicles involved) My homie was also responsible for paying the owner for repairs to the tree and my for paying the cost of repairs to the pole; which belonged to the light co, and the telephone company. Both came to collect and $25,000 later, my friend ended up coming out of his pockets!! Normally, the insurance company would have paid for all of the damages, but my friend only carried $10,000 in Property Damage liability coverage. Needless to say, he was not a happy after his insurance carrier paid the $10,000 max limit and my friend was responsible to pay the remaining $15,000. He could have increased is limits to $25,000 or even $50,000 prior to the loss for about a few cents a day, but instead had to secure a 2nd job to pay for all the damages caused...a few cents today, will save you thousands later!
These type of scenarios happen often and sometimes the penalties are more severe and costly, like losing a home, any assets you may have or even having your wages garnished. So remember to crack that policy declaration page contract open to make sure you have enough coverage and limits to pay for that brand new Tesla, that's driving directly in front of you, in case he stops short because if a kid's ball rolls unexpectedly into the street and you can't stop in time...lets just say-MAKE SURE you have enough & be careful out there!