Ever Wonder If Your Car Insurance Coverage Is Enough?

Waiting till you’re in an accident to change your insurance coverage is too late. Once you’re involved in an accident, whatever insurance you had at the time of the accident is the insurance coverage you get. So it’s important to understand how much coverage you have and know if it’s enough for you.

One of ways to protect yourself against the issue of too little coverage is to obtain uninsured/under-insured motorist coverage. This type of coverage is specifically designed to cover you in the even that the person who hits you has no insurance or too little insurance to cover your hospital bills, lost wages, etc. which was a result of the accident.

A great example of this is to image you’re in an accident. The person who hit you has $10,000 in coverage, but you have $40,000 in medical bills because you spent a couple nights in the hospital. Now the person who hit you pays you his $10,000 in coverage, but you still owe $30,000 to the hospital.

Now we have to figure out how to cover that remaining $30,000. If you have $100,000 in uninsured motorist coverage, that money will go towards covering the remaining $30,000. No worrying about coming up with the bill personally or coming up with a $5,000 medical insurance deductible. There are other ways to lower the bills, but this is one of the easiest and most effective ways for covering that extra $30,000.

The other example is to imagine you hit a person and they hurt their back. They treat for a few months and a neurologist recommends back surgery with a price tag of $150,000. If you only have $50,000 in coverage you could be exposed personally to the other $100,000. This situation is too speculative for the purposes of this article because the amount of coverage you have for this situation depends on your net worth and other factors.

The kind of coverage and the amount of coverage people have at the time of an auto accident matters. The coverage available can greatly affect the type and quality of care that individual receives.

If you have any questions regarding your coverage, please give us a call.