As a realtor you spend an unusually high portion of your time traveling between appointments, showings, and other related activities. You are also the definition of a “Distracted Driver” with the amount of phone calls and texts you receive while driving.
With all of this is mind…if you hit someone with your vehicle do you have enough insurance to handle the claim?
Odds are NO. How do I know this? Twenty-one (21) years of looking over realtors renewal paperwork shows on average that realtors carrier just above the legal limit required by Florida State law. Florida requires you to carry at minimum $10,000 in Property Damage, $10,000/$20,000 in Bodily Injury in the event of an accident and $10,000 in Personal Injury Protection (PIP).
Breaking Down the Limits!
Property Damage Liability covers costs related to damages you cause to others that involve property such as a vehicle or building. If you hit someone the insurance company will pay up to the limit you requested. If you maintain the base limit of $10,000 and get in an accident the most they will payout is $10,000.
And let’s face it, most vehicles cost to repair or replace is over $10,000!
Bodily Injury Liability covers costs related to medical expenses that you cause to others in an accident. The state says you must carry $10,000 per person $20,000 per accident. Medical costs associated with an injury accident on average are $21,000. This means you need higher limits!
Personal Injury Protection (PIP) is the no-fault law that provides medical benefits to you up to $10,000 no matter who is at-fault for the accident.
What Could Happen!
Let’s say you got into an accident that you were found at-fault. If your limits are not high enough to cover the damages you caused you will most likely being hear for the plaintiff’s attorney.
Believe me when I say Personal Injury Attorney’s don’t spend millions of dollars each year paying for Billboards, TV Commercial and Google Ads because there is no money in it!
They will sue you and attempt to garnish your wages until the amount of damage you caused is recovered…plus their fees!
So instead of working for yourself, you will be working for the person you hit in the accident and their lawyer.
What Limit Should You Be Carrying?
At minimum, $100,000 Property Damage and $300,000/$300,000 Bodily Injury. In addition, an Umbrella policy with a minimum limit of $1 Million.
I know what you’re saying and thinking…I’ve never been in an accident, why would I pay the extra cost for higher limits! And my answer is, “An Accident by definition is unexpected, unintentional and that is why they call it an accident”