Totaled my new Tesla Y with minimum insurance. What happens

[estherkinyua]

My 2 month old Tesla Y was hit and totaled by an individual, clearly at fault (video shows them running into back of stopped car without braking at 40 mph).
Geico (the guys insurance) let’s me know that their insured property limit is no where near the value of my car. Minimum property limit for my state is $25k.

Now my car insurance property limit is insured at $50k and the recent price paid for the Tesla was $62k with tax, fees and registration. I just started a claim with my insurance, what will happen? Will my insurance offer me $37k + $25k from his insurance and then sue him? Will my insurance offer me $50 (my limit) and sue him? Will I get only $25k from his insurance and be stuck with no car and the payments? Some other outcome?

 

[bfastpool]

@estherkinyua Moral of the story: If you wrecked into another Tesla just like yours, you couldn't cover the damage with your current insurance. Increase your limits.

 

[thetruthseeker1983]

@bfastpool I find it ironic that the OP didn't even consider this.

 

[deepwound]

@thetruthseeker1983 I think most people who end up with limits like this either put together the policy themselves at a discount insurer’s website, or just have a lazy AF agent. For less than $1/month (likely), they could boost PD to $100k or beyond. Follow-up moral: if you don’t understand the financial product you’re buying, always talk to a professional first.

 

[sgtstruble]

@deepwound I was an insurance agent selling policies for a mid sized insurance company in 44 states. You’d be surprised the number of people driving bmws with state minimum coverage who would scream about how “you’re just trying to get more of my money!” Or “I’m a good driver I’ve never had a ticket and haven’t had an accident in 5 years.”

Uh no I didn’t even get commission on policy sales, it was literally my job to tell them they were under insuring themselves and could be financially responsible for anything over their policy limits.

 

[saintsdelight]

@sgtstruble Totally. I worked for State Farm and it’s terrifying the amount of people who carried minimum limits. I would always just tell people like this, “you don’t get insurance for the likelihood, you get it for the consequences if you don’t”

 

[sdtexas2022]

@saintsdelight Love this quote!

As luck would have it I’m insured with SF with high limits. It does help that I use to be claims adjuster who had to have painful conversations with people who had limits to low.

 

[thehighlander]

@sgtstruble Kinda like the people driving Audis, BMWs, Benzs with salvaged titles who get pissed when their car gets totaled and they their payout isn't what they expected it to be lol

 

[mybridges]

@thehighlander I don't own a car, but what would you get as a payout with a salvage title.

 

[aboutsites]

@mybridges The industry rule of thumb is to deduct 20% to 40% of the Blue Book® Value, but salvage title vehicles really should be privately appraised on a case-by-case basis in order to determine their market value.

https://www.kbb.com/faq/values/#:~:text=A%20salvaged%2C%20reconstructed%20or%20otherwise,to%20determine%20their%20market%20value.

 

[xavier1777]

@bfastpool When being a cheap ass costs you money. For 20$ more a month they probably could’ve gotten much better limits.

 

[ben982743]

@bfastpool Genuine question for you what’s a good limit? I did mine thru progressive and just took the suggested which was $250k/$500k/$250k….. never had an accident other than hitting a deer once

 

[konakona]

@ben982743 that’s mine then i add medical payment and uninsured drivers coverage

 

[ben982743]

@konakona I have 250/500/250 UMI PIP collision and comprehensive w $50 deduct glass

Progressive was by far the cheapest for me but i had to figure it all out on my own for what i needed

 

[toast19]

@ben982743 For the majority of Americans this would be over insuring. Insurance is risk transfer. So when making these decisions first figure out what you have to lose and then buy insurance accordingly. A renter with credit card debt etc etc does not need 250/500. A woman whose mortgage is paid off and has a shit ton in the bank does. (Also needs and umbrella)

 

[ben982743]

@toast19 The difference between 100/250 and 250/500 wasn’t huge for me at least maybe $30 over the 6 month policy so i upped to it just to be on the safe side

 

[toast19]

@ben982743 Totally get it. But 1. Not always cheap. 2. 250/500 may not be available to certain drivers

 

[ben982743]

@toast19 I agree it was only cheap on progressive i pay roughly $500/6mo for my policy

 

[brendang]

@ben982743 That’s an amazing rate for that level of coverage

 

[gregswife]

@toast19 As an agent, I have to respectfully disagree. Minimum industry recommends is 100/300. Keep in mind that number is regarding injuries. Do you realize how expensive medical bills can be? If a poison can afford 250/500/100 and a plp (umbrella/extended liability) then they should. More so if they have assets.

Also... keep in mind a person cannot get a higher limit for uninsured/underinsured than they have for their own liability. So it would be very irresponsible to tell someone to go with low or minimal limits.

Not only that... but the more people carrying the Minimum the more burden there is in everyone else and this actually contributes to premiums increasing.