lawguy

Friends -

In pondering a post earlier on another forum, I was reminded of a message that I pass on to all my clients, and have also shared with my family and friends many times before. I wanted to make sure I passed on the tip to each of you.

Each of you really need to remember to check to see that your auto insurance has appropriate UNINSURED and UNDERINSURED limits on your coverage. In this day and age, its especially important, as there are so many people out there with NO liability coverage, or who only have the minimum liability coverage (usually $25k, sometimes as low as $10k in a few states).

Many insurance agents do not push Under and Uninsured coverage to their own insureds, as they're trying to put together as low of a quote as possible to make it seem more reasonable. I've seen way too many clients who thought the fact that they had asked for (and told they had been given) "full coverage" meant they had plenty of UM and UIM coverage, when in fact, they didnt. You might think you've gotten a heck of a deal, but if you dont have enough UM and UIM coverage, you're putting yourselves and your family at risk if you're inj a nasty accident caused by some other fool.

I carry $250k of each coverage, in the event I'm ever hurt at the hands of some fool without enough coverage. To up your own coverages is usually only about a hundred bucks - one of the great deals out there.

You can check out all your coverages on the declarations sheet which you should have recieved in the mail, along with your bill. It will list each automobile which is covered, along with a listing of each coverage and its amount - liability, uninsured, underinsured, rental ins., etc. Or you can simply call your agent.

I've seen several sad situations where clients came to our firm after someone was killed (most often, by a drunk driver) and the guy causing the wreck only had $25k. So, suddenly, you're dead (or even worse, maimed) and their insurance company writes your grieiving spouse a check for $25k, and that's it, when for about $100 a year, you can get 10 times that much coverage, just in case.

I do think its possible to be "over insured", but honestly, getting the full $250k in underinsured and uninsured auto coverage is about the best bargain there is...especially with medical costs being what they are....it takes very little to get $50k in medical bills from a wreck, and if the guy that hit you has $25k, you're out of luck.

Sorry to rant and rave - its just an issue that is a personal crusade. Too many times, agents use the phrase "full coverage", and their own insureds think they're set, when in fact, so much more could be done. If you need to save money on your premiums, then raise your deductible, but use the savings on getting the extra UM coverage. It goes to YOU and YOUR family, if needed.....

Anyhow, I just thought each of you might want to double check and ponder the same issue yourself.

Chuck W.

GREAT advise. Here in Los Angeles especially. We have a number of uninsured motorists. If you saved just one member the headache of being under insured in this area, this was a worthwhile post. Nice job!

bmw093

It's great advice. In NJ, the minimum liability coverage for personal injury is now $0 (you can lawfully carry $0 liability insurance for terrible injuries you may cause to others). So for all of you in NJ, protect yourself and your family by carrying lots of uninsured/underinsured coverage. Remember to make sure you get both uninsured and underinsured coverage (in NJ some carriers won't give you both unless you ask), and carry high limits. I have 1 million, which wasn't offered and had to be a special request, but it was easily accommodated, and for about $30 or so a YEAR extra.

Great idea bringing it up.

jrsamps

Car insurance is a nightmare for NJ drivers. Great advice.!!

ivan545

Yeah its a good advice, i had all state before and i was told that i had Um, which i did but when i was hit with by a Um driver i still have to pay 500 deductible because they forgot to add the Um waiver which i found out afterwards, it's only an additional $6.00 and i was like man do you think i would have cared about extra $6.00 i thought i already had that covered, i had two cars, my bmw and a honda accord, on my honda accord i had it, but they forgot to add it to my bmw i was so mad i called the agency and all they can do was like i forgot to add it. There was nothing that i can do from that point so the all state insurance company was like you don't have it so i have to bill you, and they told me to try to reclaim the money from the other party, the other party don't have insurance so i might have to go to small claims for $500 but it's not worth my time so they will just slide. After that incident, i changed to 21'st Century,

My current coverage is for bodily injury up to $500k
property damage and Um body injury $300k
and medical payments $5,000
my deductible is only $500 includes the um waiver
and all rental and towing is free. also include $1,000 for additional equipment, rims anything, add on covered.

This coverage was better than all state and my payments are still $260 a month, i'm a good driver and not accident/ tickets.

Remember to check your insurance policy, if i had read all the fine prints in the beginning that would be important when the accident occurs you better be covered i don't believe in those small insurance company that do say full coverage i have to see what it's covered period.

That Um driver that hit my car , it wasn't bad at all size of a dime on my rear bumper but because i was told by my insurance company that my deductible was waived i took it in the body shop and they didn't charge me but it was after the repairs the insurance company sent me a letter stating that i don't have the um waiver that's when i found out about that situation, it was the sales agency that forgot to add it and as far as the insurance company goes their black and white you have it or you don't. I can only blame the sales agency but they can only say oops so the matter comes down to my own fault for not reading the small prints. Thats why i found out better coverage from 21'ts century and same price so i changed. But all major accident i should be fine, and "am I in good hand" the all state quote, well i'm not, not from them.

TexaZ3

I used to carry 25/20/25, but recently upped it to 500/250/500 and it only cost me $127 per year! Definitely worth it!

hmc

I don't buy these. Reasons are:

1. If I am not injured, car damage can be covered by collision.
2. If I am injured/dead, I have medical and short&long term disability insurance and life insurance from the employer.

On the other hand, I buy big amount of liability coverage or I run the risk of lossing all my assets.

bmw093

Of course I respect your opinion, and having high liability limits is certainly important, but UM and UIM cover you for your own pain and suffering, for a very small amount of money a year in premium--on top of your contractual disability payments. And, remember that UM and UIM also cover your passengers (esp. important for families or others in your car). I don't have any affilitation with the insurance business, but I see lots of people suffer terrible losses who could have easily protected themselves or family members a little better.

Also, your liability limits and UM limits should match. To go from $300K UM to $500K UM probably costs $5 to $10 per year.
Just my .02

nickolas_g

Thanks for taking the time on this! Much appreciated.

lawguy

My pleasure. You guys are my new 'peeps' !