One small mistake at a red light led to a $150,000 injury claim. Learn how a lack of coverage nearly cost one driver everything—and how to avoid the same risk.
It felt like nothing. A soft bump at a red light. No damage, no injuries, no police. But two weeks later, a lawsuit was brewing. Medical bills were piling up. A $150,000 demand was on the table, and the driver who caused it never saw it coming.
It Felt Like Nothing. But It Was Everything.
A young professional was driving home from work. As traffic slowed near an intersection, he tapped his brakes a second too late. His bumper made light contact with the car in front of him.
No one appeared hurt. Both drivers stepped out, took photos, exchanged insurance information, and went their separate ways.
“I figured it was a scratch. I thought my insurance would take care of it.”
His insurer processed the minor property damage claim just under $2,000. Case closed. Or so he thought.
The Injury That Didn’t Show Up Right Away
Two weeks later, his adjuster called. The other driver had started treatment for back and neck pain. Then came MRIs, physical therapy, pain management, and eventually, an attorney.
The injury claim climbed fast. By the time everything was submitted, the demand had reached $150,000, far beyond what his auto policy would cover.
“I didn’t even know a claim could go that high. I felt completely blindsided.”
The Limits Weren’t Enough
Like many young drivers, he had chosen the state minimum for bodily injury liability:
$25,000 per person
That limit was exhausted quickly. The rest became his problem.
With the other party threatening a lawsuit, his personal assets were suddenly in the spotlight:
Wages
Savings
Even future income if a judgment was granted
“I had to sit down and think about how I’d pay this if they sued. I had no idea insurance worked like this.”
“I had to sit down and think about how I’d pay this if they sued. I had no idea insurance worked like this.”
The Moment It Became Real
“The worst part wasn’t the money. It was the stress. The panic. Wondering if this one little accident would follow me for years.”
He wasn’t reckless. He wasn’t speeding or distracted. He was just underinsured.
What Could Have Changed Everything
1. Higher Liability Limits
Raising limits from the minimum to $100,000 or $250,000 can cost just a few extra dollars per month. That extra protection could have absorbed the full claim without risking his future.
2. An Umbrella Policy
This low-cost policy adds $1 million or more in liability protection above your auto or home coverage. It picks up where your standard policy stops.
3. Understanding the Risk
Most drivers assume they’re protected because they have insurance. But if your liability limit runs out, everything else is up for grabs—even your paycheck.
Key Takeaways
Even low-speed accidents can trigger six-figure claims
Minimum limits offer minimum protection—and maximum risk
You are responsible for anything your policy doesn’t cover
Umbrella insurance offers affordable peace of mind
“I paid my premium and thought I was covered. No one explained how fast a small accident could turn into something this big.”
A Gentle Reminder
If you haven’t reviewed your auto policy lately, now is the time. Your liability limits should protect your income, your assets, your savings, and your future.
One small accident shouldn’t have the power to undo everything you’ve worked for.
A ten-minute policy review could save you years of regret.
“I paid my premium and thought I was covered. No one explained how fast a small accident could turn into something this big.”
Your personal assets, including your home, savings, and even future wages, could be at risk.
If you’ve ever skimmed your home insurance policy (or let’s be honest, shoved it in a drawer), you’re not alone. Most of us just assume we’re covered for whatever life throws at us, until we find out the hard way that some disasters fall into the “you’re on your own” category.
One teen’s mistake led to a $190,000 insurance claim. Learn how low liability limits cost this family thousands, and what you can do to protect your own.
That dreaded check engine light just appeared on your dashboard. Will your car insurance help with repairs? Learn what’s covered before you’re stuck with an unexpected bill.
