I am carrying the recommended limits on my auto policy. How come I still need to pay out of pocket for this accident?

"The limits I carry on my auto policy are 100/300/50, which my agent recommended to me at the time. I skidded off the ice and slammed into the corner of my neighbor's house.

They say it will cost $150,000 to repair, but my policy will only cover $50,000! I thought I was appropriately covered."

Answer provided by
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Shannon Martin
Answered on May 12, 2021
“This is a hard situation to be in! The limits on your policy of 100/300/50 are the standard recommended limits; however, this doesn’t mean they will cover everything.
There are some losses that are so catastrophic and unpredictable that you really can’t plan for them. The limits on your policy need to be right for you. If you live in an area where homes and cars more expensive than most, then your property damage liability limit should be higher.
In this situation, your neighbor’s homeowners policy will pay for the damage to their home. However, the insurance company will seek reimbursement from you directly. Let them know of your situation and see if they will work with you on a payment plan. “
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