The Importance Of Carrying Enough Insurance For Your Vehicle

No one wants to spend a penny more than they have to on insurance.  Insurance companies know this and you can find television commercials from insurance companies that appeal to our desire not to pay more than necessary to insure our vehicles.  When it comes to motor vehicle insurance, the old saying “penny wise, pound foolish” could not be more true.

I receive daily calls from perspective new clients who have been injured in a car crash.  Most, unfortunately, carry minimal coverage for liability and supplemental uninsured/underinsured motorist coverage.  You don’t perceive this as a mistake unless you are seriously injured due to the negligence of another driver who only has the minimum amount of liability insurance ($25,000 per claimant).  By increasing your supplemental uninsured/underinsured coverage (SUM coverage), you are insuring yourself from being a victim twice…first, when insured in an accident, and second when you find out there is only $25,000 worth of insurance to compensate you for your injuries. 

For just a few hundred dollars per year, you can significantly raise you SUM coverage to $500,000.  The way SUM coverage works is that you first settle with the negligent driver’s insurance company for the policy limits (with your own insurance company’s prior written consent).  Then you negotiate with your own insurance company to obtain more money from your SUM coverage.  Your insurance company will subtract the other driver’s insurance settlement from your SUM coverage and the balance is available for your damages.  If you can’t agree to terms with your own insurance, you can go to binding arbitration.  I highly recommend that car crash victims hire an experienced motor vehicle accident attorney to represent them to avoid making a mistake with the SUM coverage claim procedure.

This is a no brainer.  Don’t be an accomplice to your own victimization.  Call your insurance agent today and up your SUM coverage.