Quote:
Originally Posted by ADL Colin
Home and car insurance can cover those.
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Auto and Home owners insurance have limits.
For instance, most auto insurance policies use a 25/50/25 claim limit formula or something similar.
"25/50/25" means your insurance company will pay up to $25,000 if one person is injured or killed, $50,000 if more than one person makes a claim and up to $25,000 in property damage.
If, however you run down a family of three in a crosswalk, and you become the loosing defendant of a $5 Million wrongful death suit, you are on the hook for about $4,050,000 and change. Your assets will be attached (including, but not limited to, wage garnishment, attachment of investments, real estate, autos, etc.) to make up the difference to satisfy the judgment.