I don't sell car insurance, but as a lawyer
practicing in the field of personal injury I frequently see people suffer
because they have the wrong insurance coverage. Often, this happens because
they purchased directly from an insurance company instead of an independent
broker.
Many of my clients who have been seriously
hurt in a car accident were struck by someone who had no insurance or only the
minimum liability insurance coverage, which is $25,000 in New York and much
less in many other states. Unfortunately, many of my clients were sold
insurance policies with liability limits of $100,000 or $300,000, but were not
sold matching uninsured and underinsured coverage.
Just this week, yet another new client had
this problem. My client was a pedestrian crossing the street when she was
struck by a car which fled the scene. The driver was caught shortly after
leaving the accident, but the owner of the car only has the New York State
minimum liability insurance of $25,000 and my client has serious injuries
consisting of many broken bones including a fractured arm, leg and skull.
My client owns a car with liability insurance
limits of $300,000, but she purchased the insurance from GEICO whose
salesperson didn't sell her underinsured coverage. GEICO does not use
independent insurance brokers, but sells insurance directly to consumers
through in-house sales agents.
For a small fee, my client could have
purchased underinsured coverage of $300,000 which would have allowed her to
recover $300,000 for her injuries instead of $25,000. Ironically, she did not
need the $300,000 liability coverage to protect her assets. However, since you
cannot buy underinsured coverage higher than your liability coverage, I would
have advised her to purchase $300,000 liability coverage for the sole purpose
of being able to purchase $300,000 underinsured coverage.
I have had many clients in this situation who
lost their jobs because of serious injuries and incurred substantial debt. If
they had matching underinsured coverage, the additional money available to pay
their claim would would be a big help to pay their bills and get their life
back together.
Underinsured motorist coverage will pay you
money from your own automobile insurance policy if you have been hurt in a car
accident by someone who was negligent for causing your injury and who had less
liability insurance coverage than you did. Uninsured motorist coverage will pay
you when the other car did not have any insurance coverage or the identity of
the other car is unknown.
Underinsured and uninsured coverage is
inexpensive and usually available in limits that match your liability insurance
coverage. It is not available in amounts greater than your liability insurance
coverage.
Underinsured and uninsured coverage is so
important that a couple of states now require coverage limits matching your
liability insurance limits, unless you decline the coverage in writing. Several
years ago, I suggested to several New York State senators that they enact a
similar law in New York.
I have also seen many clients who were not
sold the maximum medical payments insurance, which costs me only $2.01 per
month on my car insurance policy. This is particularly important for people who
do not have a good health insurance policy. It is also beneficial for
passengers who do not have health insurance.
Why should you buy car insurance through an
independent insurance broker? The courts have defined the reason. There have
been several "malpractice" lawsuits against insurance companies for
failure to offer underinsured and uninsured motorists coverage limits matching
the liability limits. However, when the insurance company sells directly to consumers,
these cases have gone in favor of the insurance companies. The courts found
that when a consumer buys insurance directly from an insurance company, rather
than an insurance broker, the consumer is only buying insurance and is not
paying for advice.
When you buy auto insurance from an
independent insurance broker who represents several different insurance
companies, you get the advantage of an insurance professional who can evaluate
your needs and advise you accordingly. Additionally, only an independent
insurance broker can provide you with a choice of insurance companies and
premiums, so you get the best coverage at the lowest price.
Whether you buy your car insurance directly
from an insurance company or through an independent insurance broker, always
make sure that you purchase matching uninsured and underinsured motorist
coverage and the maximum medical payment benefits.
Philip L. Franckel, Esq., is the founder
of http://www.HURT911.org an accident and injury research web site
for people hurt in an accident and personal injury lawyers. Mr. Franckel also
publishes articles on Lawyer Advertising at http://www.Lawyer-Advertising-Blog.com
Article Source: http://EzineArticles.com/?expert=Philip_Franckel
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