Insurance companies and personal injury victim lawyers rarely agree on issues, with one exception: It’s best not to have a minimum limits, bare bones insurance policy coverage because it will not cover catastrophic or serious injuries in the modern world. Why? Because medical and hospital expenses are skyrocketing and it doesn’t take too much hospitalization or medical care in a personal injury case to mean that a minimum limit/coverage car insurance policy will not provide enough coverage to compensate a victim.
You say you have “full coverage”? Think again. That is a meaningless phrase.
Most states, such as Virginia (VA) and the Carolinas, mandate a certain amount of minimum car insurance coverage for insurance companies issuing policies in those states. For example, in VA, every insurance company must offer at least $25,000.00 of insurance for liability coverage for the insured. That means if you are at fault, your insurance company will pay up to $25,000.00 to the other injured person. Flipped the other way, if you are the person hurt, and the other careless driver only has that $25,000.00 in minimum insurance required, and if you incur $15,000.00 of hospital bills in the first week, then you can see immediately that $25,000.00 in insurance will not really be enough coverage if you may suffer some permanent injuries from the accident.
So, this is the one area that personal injury attorneys and insurance companies/agents agree on – don’t get the bare bones minimum insurance police. It simply isn’t enough coverage and state legislators do not increase minimum coverages until years go by and inflation makes the current minimum coverage limits ridiculously low.
Also, don’t be fooled by the phrase “full coverage.” It means your policy includes liability and underinsured motorist coverage, but it still can mean you only carry minimum insurance – which may be totally inadequate.
WHAT IS ENOUGH CAR INSURANCE COVERAGE?
I discuss this with some of our clients after they have been in a car accident. As most consumers realize, you can’t raise your rates after an accident and get the additional coverage to apply to what happened before. It is the coverage that you had on the date of the accident that applies.
I recommend not less than $300,000.00 worth of liability insurance and equal uninsured/underinsured motorist insurance coverage as well. What this means is that if you are momentarily careless and cause a terrible accident, you will have up to $300,000.00 of coverage that the insurance company will cover you for (this is liability coverage). On the other hand, if you are in an accident and the other at fault driver has no insurance or not enough insurance, then your own uninsured/underinsured motorist car insurance kicks in and you have up to $300,000.00 of coverage that basically applies to the accident to help you.
Check out this article that explains why uninsured/underinsured motorists coverage can be the most important car insurance you have because it covers you or a family member if the other careless driver has no insurance or is a drunk driver with no coverage.
I don’t agree with insurance companies on much, but I do agree that you really need an adequate amount of insurance in the modern world given skyrocketing health and medical expenses. One week in a hospital involving intensive care treatment could easily run $20,000.00 or more depending upon the level of testing and analytical and diagnostic tests. Talk to your insurance agent if you’re not sure what your coverage is and take care of this business before an unforeseen accident occurs.
About the Editors: Shapiro, Cooper, Lewis & Appleton personal injury law firm (VA-NC law offices ) edits the injury law blogs Virginia Beach Injuryboard, Norfolk Injuryboard, and Northeast North Carolina Injuryboard as a pro bono service to consumers.
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