QuestionMy state only requires $50,000 / $100,000? Why would I carry more than the minimum? From what I can tell on this web site, you don't suggest suing the individual at fault for the shortfall between the damages and the amount of insurance. Is this usually an unsuccessful strategy?
Answer
Dear David,
The reason you want to carry as much as you can afford is two-fold.
First, you are talking about protecting yourself and your family and your assets. If you were to be liable, it does not take very much these days to exceed $50K and then the tortfeasor has a choice of suing you. So protect your own assets.
Second, you need protection versus the doofus who has no or little insurance. Thus when you make your Uninsured Motorist (UIM) claim, your limits can be no higher than your liability limits.
Think About it: You Need to Buy Insurance to Protect Yourself, Family Members, and Passengers by Purchasing Underinsured Motorist Coverage (UIM)
One serious mistake is to decline uim coverage. Some companies require that you purchase UIM in the same amounts as the liability insurance. However, many companies, depending upon state law, are authorized to sell denominations of UIM coverage less than the liability limits. The insured thinks that he is providing some satisfactory minimal coverage for his family and decides to save some money with lower UIM limits. However, UIM is probably the most important place to spend money.
You are not as likely to cause an accident, as you are to be a victim of an accident. At least if you are taking the time to ask this question, you are probably a person who will exercise more care and judgment in your driving than the ordinary person. Therefore, it is more likely that you will be making a claim against another person for injuries sustained by you at the hand of the third party tortfeasor.
In this case, the tortfeasor may (but likely will not) have sufficient insurance to cover you and your passengers for all of your medical expenses, wages loss, and general damages. If not, then the tortfeasor is said to be "underinsured". In that instance, the balance of the value of your claim, above the bodily injury policy limits of the tortfeasor, is the responsibility of your own company's UIM coverage.
A third possibility is if the tortfeasor is uninsured. This is a distinct likelihood if someone who is reckless, or who has a drinking problem or who is driving with a suspended license involves you in their traffic habits. They caused you and your passengers harm, but they have no insurance. You will be making your entire claim under your UIM polity limits.
All too often, we have seen serious injuries to individuals and their families receive little or partial compensation because the insured elected to "save money" by not purchasing the maximum UIM coverage available to him. Purchase as much UIM coverage as you can afford.
Consumer Tips on Buying Auto Insurance http://www.settlementcentral.com/page8006.htm
Complete Information on Buying Auto Insurance http://www.settlementcentral.com/page8008.htm
I trust that my extra time here has produced some information that has been of value to you, and thus I would respectfully request that you locate the feedback form on this site and leave some feedback for me.
Best Wishes,
Dr. Settlement, J.D.
http://www.SettlementCentral.Com
