The general rule is “as much as you can afford.” Sometimes we represent client’s without auto insurance. Their usual response is that they could not afford it. Our response is you can’t afford to NOT have it.
If you do not have auto insurance and get struck by a hit and run driver or a person without auto insurance, you have no claim at all, no matter how hurt you are. Even if the other person has coverage, you miss out on instant wage loss and medical reimbursement. You do not have the luxury of seeing any doctor you want and even if you have health insurance, you might have to repay them out of your settlement.
As personal injury attorneys, we have had the benefit of helping thousands of people. Throughout this time, we have come up with a number of helpful suggestions for people as we review their present automobile policies. Please keep in mind that these suggestions will help with future cases and are simply offered to protect you and your loved ones down the road.
In order to maximize the value of money you spend on your automobile insurance, you should check with your insurance agent and make sure you have the following coverages:
A. All persons living in your home should be listed as named insured on your policy. This will ensure they are all covered should they be involved in an accident.
B. STACKING (combining the insurance coverages on all vehicles) If you own multiple vehicles, or you and family members own multiple vehicles, make sure the polices are all with the same insurance company and have them STACKED. This will allow you to multiply your benefits for each car for a nominal price. For example, for an extra $100.00 per year in cost, you can get an additional $20,000.00 in wage loss coverage AND $20,000.00 in medical bill payments per car insured.
C. UNINSURED AND UNDERINSURED COVERAGE You should carry a minimum of $100,000.00 for uninsured and underinsured coverage. These coverages are inexpensive and protect you and your family in the event the at fault motorist does not have insurance or does not have enough to properly compensate you for injuries. A family’s worst nightmare is a tragic accident with terrible injuries and not having enough insurance to pay for the bills and other matters. This coverage is inexpensive and well worth the cost.
D. UMBRELLA POLICIES Many people decide to purchase umbrella policies. This is a large policy that provides additional coverage to your car insurance. This is a good idea, but you should make sure it also provides UM/UIM coverages. This is the coverage that protects you if you are injured by someone who has no insurance or does not have enough insurance.
E. GAP INSURANCE On most leased cars, the dealership will provide gap insurance without your request. Be sure to ask for it because it may help if you are in a crash.
Sometimes you owe more to a bank than the car is worth. Being “upside down” on your loan is common and often frustrating for the victim. Gap insurance ensures that even if you owe more than the vehicle is worth, you will not pay a penny. Since cars depreciate so quickly, it may take years for the value to catch up with the loan. Gap insurance protects you right off the lot.
