The Importance of Having Enough Insurance Coverage

How much insurance coverage do I need?

It’s not enough to have insurance — you have to have the right insurance in the right amounts. Many consumers are careful to calculate the amount of life, home and auto coverage they carry, but trust too much that others will do likewise. It would be great if everyone conscientiously took responsibility for their own negligence, but, too often, that’s not the case. So, you need to guard against one of the biggest threats on the road: the uninsured or underinsured driver.

The law sets minimums for auto insurance coverage that are often not adequate to cover serious accidents. For example, the minimums in Virginia are:

  • $25,000 for bodily injury/death of one person
  • $50,000 for bodily injury/death of two or more persons
  • $20,000 for property damage

Imagine you are driving your brand new 2015 Chevrolet when another driver runs a red light and smashes your car broadside, seriously injuring you and another member of your family. The driver is carrying the legal minimum in auto insurance. That’s $50,000 in coverage for injury claims that could eventually reach into the millions, not to mention only $20,000 to replace a $50,000 car. The insurance company is only on the hook for the limits of the driver’s policy, and it’s likely that such a driver doesn’t have assets you can attach to satisfy your claim. This scenario is even worse if the driver has no insurance at all, as is often the case.

To avoid this predicament, you need to carry at least $100,000 in uninsured/underinsured motorist insurance. This addition to your auto insurance policy kicks in when a driver who causes an accident in which you suffer losses doesn’t have any or sufficient insurance to cover your losses. As with any other type of insurance, you have to consider the amount of coverage you should carry. This depends on the value of the vehicle you drive and the quantity and quality of the medical insurance you already have.

Policy holders are always suspicious of insurance agents who try to sell them additional coverage. But if you want an unbiased opinion, ask an attorney to assess your policies and your levels of coverage. A policy review could save you a great deal of grief in the future. To speak with a knowledgeable injury attorney, call Marcari, Russotto, Spencer & Balaban at (888) 351-1038 or contact our office online.

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