The major insurance companies always make the same promises in their advertising campaigns: big savings and peace of mind that you are covered. Do you really think these billion dollar for-profit companies are out to help you? I once met a very wealthy client who was injured in a car accident and I asked him how much coverage he had. “Full coverage,” he told me. We are here to tell you that full coverage car insurance is a myth. What matters is the AMOUNT of coverage you have in each category.
Insurance companies won’t sell you what you need, you have to ask for it. Here is what coverage to look for on your car insurance policy:
- Bodily Injury Insurance – This is coverage to protect your assets in case YOU hurt someone in a car accident
- UM/UIM (Uninsured and Underinsured Protection) – This is coverage that protects you if you are injured by a driver with inadequate car insurance or no insurance at all.
- Medical Payments Coverage – This is coverage for your medical bills resulting from injuries in a car crash and is also very important.
In Colorado, drivers are only required to carry $25,000 in Bodily Injury Auto Insurance. Check your policy, are you one of these drivers? If you are, and you injure someone, you only have $25,000 in coverage. $25,000 in coverage is often inadequate and might cause the injured person to come after your personal assets. You could lose your house, your kids’ college fund, everything—if the injuries are severe enough.
We recommend a MINIMUM of $100,000 in Bodily Injury coverage which will not increase your insurance rates as much as you think. Here is the important part, you MUST have UM/UIM protection in case you are injured by a driver with not enough insurance, or worse, NO INSURANCE AT ALL. Again, we recommend a minimum of $100,000 in coverage. You don’t want to be the person seriously injured by a driver without insurance and not have this coverage.
You want to have Medical Payments Coverage, so opt in for at least $5,000 of coverage or more. This will make sure you get your bills paid for right away without a hassle. Having the right insurance policy can mean the difference between stability and bankruptcy. Check your policy now, and make sure you have the right coverage. If you don’t, a mere $10 to $15 a month could make all the difference.
If you are a victim of a car accident and inadequate insurance was provided, please let Ramos Law help you today.