We don’t sell auto insurance, but we’ve learned a lot about it in 18 years of car accident injury work. Mostly, that there are many misconceptions about coverage, and many injury victims are disappointed. For example: Let’s say you’re seriously injured by a negligent driver. You require hospitalization, surgery, and follow-up therapy. You also lose time at work, and you are never quite the same. So you request compensation from the other driver’s insurance. Unfortunately, the negligent driver only has minimum liability coverage ($25,000). The real shocker comes when you discover that your UIM coverage was only $25,000. Therefore, the maximum insurance available to compensate you is only $50,000 – a fraction of what you need.
So what went wrong? For starters, let’s review some basic terminology:
So how do you protect yourself? Simple, buy more insurance. Thankfully, 10 times your current coverage won’t cost you 10 times as much. More likely $300-$500 extra per year. This will vary, of course, but the cost of two extra-large pizzas a month seems a small price to pay for protection against a life-changing catastrophe.