Car Insurance Trivia - Genus I

Tired of the same old games on Saturday night? Say goodbye to Scattegories and Cranium, and hello to the new, fun game, Car Insurance Trivia (Genus I)!

Innocent Charlie vs. Negligent Ned

The Scenario: Charlie is involved in a serious accident in which Ned, another driver, is held liable. Charlie is awarded $1 million, and while Ned did have insurance, this judgment greatly exceeds his liability limits. Even Charlie’s underinsured motorists endorsement doesn’t come close to fully satisfying the judgment.

Is Charlie just out of luck?

The Answer: In most states, the answer is yes. However, some states have created unsatisfied judgment funds to address situations such as this. If Charlie is lucky enough to live in such a state, he may be able to collect at least a portion of his unpaid damages from the state fund. In many such states, Ned would have his driver’s license suspended until he could pay back the state fund.

Love, Marriage, and Car Insurance

The Scenario: Harry walks in on Mary kissing Larry. Harry and Mary are married, but Mary moves out and moves in with Larry. Four months later, Mary is driving to Gary, IN to visit her brother Jerry. Entranced by Mariah Carrey, Mary drives off a bridge and crashes into a ferry.

Will Harry and Mary’s joint car insurance cover the damages?

The Answer: No. If a spouse ceases to be a resident of the household, he or she is insured for just 90 days. After that, the departed spouse is no longer covered.

Skeeter’s Fleet

The Scenario: Skeeter is a young internet entrepreneur. His website skeetereater.info combines the old world with the new, selling organic quails he raises on his farm to customers through the United States and Canada via an online marketplace. One Friday the 13th, Skeeter is struck with bad luck. His brand new, fully-loaded, 15,000 pound pickup truck is accidentally run over by one of his combines. Begrudgingly, he decides to take his old, beat-up Ford to the farmer’s market to deliver some grain (his side business), and wouldn’t you know it, he’s hit by one of his own combines on the way there! Finally, he loads up five dozen quails to make a special delivery in his skeetereater.info van, and half-way to his destination, there is a mutiny - the quails rebel, attack Skeeter, and cause him to crash his delivery van into a neighboring farmer’s combine.

Skeeter thought all of his vehicles were covered under his personal car insurance policy. Is he right?

The Answer: No. Clearly, the 15,000 pound pickup exceeds the 10,000 pound limit on personal auto policies. The van would also not be covered, since he is using it as a business vehicle. The old pickup, however, would be covered, because there is an exemption for farmers carrying produce to market.

Okay, so Car Insurance Trivia may never sweep the nation, but it is important for you to understand what is covered by your personal policy. The first step to becoming an informed consumer is to understand what coverages you currently have. To do this, find your dec page and review your policy. Secondly, you should determine what coverages you actually need, and do a quick cost-benefit analysis - car insurance is to provide you with value; it isn’t merely an unpleasant expense like property taxes. Finally, use the internet to comparison shop and find the best deal. In many cases, you can increase your coverage while simultaneously lowering your car insurance rates.