Insurance: What If I'm the Nit Wit

What If Im at fault in an accident

It has happened to all of us at some time or another. An accident where you are at fault. In most scenarios, one or more vehicles are involved and dealing with the aftermath is never fun. Especially when you have to call in your insurance to cover the damages.

Right now, the state of Idaho only requires drivers carry $25,000 in liability insurance. You may think “If the law only requires a minimum of $25,000 in automobile liability coverage, the legislature must know what they are talking about and therefore, this should be enough coverage…. Right?”


In my local state, this minimum coverage amount has been the same for decades! If you have any assets to protect or have a spouse and/or children, $25,000 minimum coverage of liability insurance leaves you in great peril.

Even an accident that seems minimal can exceed $50,000 in medical expenses alone in merely a few days. The monetary loss to an injury victim can include:

  1. Ambulance, hospital, doctor, rehabilitation, therapy expenses.
  2. Lost wages.
  3. Pain and suffering; emotional distress, loss of enjoyment of life
  4. Numerous other costs, expenses and loss.

Anymore, it seems that a straight forward accident can easily cost $500,000! Do you have this much insurance?

If you are carrying the minimum insurance, the "victim" can pursue all of your non-exempt assets after your insurance has paid out their obligated $25,000. Assets like your house equity, savings, vehicles and even you and your spouse's wages.

The solutions? Consult with an experienced property and casualty insurance agent and with an experienced and trusted financial advisor. And of course, with your hated lawyer!