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A question about the insurance in regards to the accident he had. He says "Bill had crappy insurance, paying out a maximum of $20,000 for the accident". He say

by pan69 10y ago

A question about the insurance in regards to the accident he had. He says "Bill had crappy insurance, paying out a maximum of $20,000 for the accident". He says the total bill was $130,000, so is he implying that he himself had to come up with the other $110,000? If that's the case, then why did Bill have insurance at all? I mean, if Bill's insurance would pay $20,000 then Bill himself would have to come up with the $110,000 right? I guess I'm missing something here...

stephenbez 10y ago
> If that's the case, then why did Bill have insurance at all? Bill probably had insurance in order to legally drive since states require you to have car insurance. The minimum coverage varies by state but can be around $20,000: https://www.nerdwallet.com/blog/insurance/car-insurance/ https://www.nerdwallet.com/blog/insurance/car-insurance/
chrisfosterelli 10y ago
> I mean, if Bill's insurance would pay $20,000 then Bill himself would have to come up with the $110,000 right? I think the reasoning is that although he would be on the hook for the $110K, since Bill was a teenager who worked at Wendy's, he likely didn't have the $110K to pay. Sure he could rightfully sue Bill for the full amount, but he can't get what the kid doesn't have.
Broken_Hippo 10y ago
Bill's crappy insurance paid out a max of $20,000 - which seems to be the minimum legally required by law for some states. Bill had insurance so that he could drive to his job legally, without the risk of being arrested or losing his license due to lack of insurance. Bill may or may not be liable to cover the rest of the bill - and even then, they might have to go through court. If bill is low income, which is likely true considering the fast food job and minimum liablity insurance - he might not have to pay it back very quickly. Even if they dock his pay at 25%, it'll take some time to recoup the money. By then, the hospital will have already put this into collections. Sometimes normal health insurance won't cover such things, but it is somewhat possible Medicaid would pay for it. So, basically, Jon is screwed. The only real prize here is that if Jon's insurances covered any of his hospital bills, they are likely to take legal action themselves.
stephen82 10y ago
"Bill" is used as the pseudonym for the teenager that caused his car accident back in 2006. So, the teenager's insurance was covering medical expenses up to $20K only.

by pan69 10y ago

stephenbez 10y ago

> If that's the case, then why did Bill have insurance at all? Bill probably had insurance in order to legally drive since states require you to have car insurance. The minimum coverage varies by state but can be around $20,000: https://www.nerdwallet.com/blog/insurance/car-insurance/ https://www.nerdwallet.com/blog/insurance/car-insurance/

chrisfosterelli 10y ago

> I mean, if Bill's insurance would pay $20,000 then Bill himself would have to come up with the $110,000 right? I think the reasoning is that although he would be on the hook for the $110K, since Bill was a teenager who worked at Wendy's, he likely didn't have the $110K to pay. Sure he could rightfully sue Bill for the full amount, but he can't get what the kid doesn't have.

Broken_Hippo 10y ago

Bill's crappy insurance paid out a max of $20,000 - which seems to be the minimum legally required by law for some states. Bill had insurance so that he could drive to his job legally, without the risk of being arrested or losing his license due to lack of insurance. Bill may or may not be liable to cover the rest of the bill - and even then, they might have to go through court. If bill is low income, which is likely true considering the fast food job and minimum liablity insurance - he might not have to pay it back very quickly. Even if they dock his pay at 25%, it'll take some time to recoup the money. By then, the hospital will have already put this into collections. Sometimes normal health insurance won't cover such things, but it is somewhat possible Medicaid would pay for it. So, basically, Jon is screwed. The only real prize here is that if Jon's insurances covered any of his hospital bills, they are likely to take legal action themselves.

stephen82 10y ago

"Bill" is used as the pseudonym for the teenager that caused his car accident back in 2006. So, the teenager's insurance was covering medical expenses up to $20K only.