Posted On: March 2, 2006, 4:00 pm CST

Posted By: HAL

So, our struggling poor person meets the insurance requirement with $20,000/$40,000/$15,000 limits.
He/she hits you and totals your two year old customized Suburban - $15,000 pd is the down payment on your burb. He breaks a leg of your passenger who has med bills of $18,000 plus 3 mo. lost income because his job won't let him work with a cast $14,000. Total BI is $32,000, PD is $27,000 = $59,000 bills. Insurance pays $20,000 + $15,000 = $35,000 resulting in a net shortage of $24,000.
Tell me again how making this person with no assets buy insurance really helps you.
The purpose of liability insurance is to
1. defend the insured in a lawsuit
2. pay what the insured owes if the case cannot be defended or he loses the case.