November 18, 2013
Tremont Sheldon Robinson Mahoney Fall 2013 Newsletter & Insurance Information
Please see the link at the bottom of the page for the Fall 2013 Tremont Sheldon Robinson Mahoney Newsletter. On the front of the newsletter is an article relating to car insurance and important information. Below please find the article in full detail.
MAKE SURE YOUR CAR INSURANCE COVERS YOU!
People often purchase umbrella coverage which protects them in case they cause an accident. However, at Tremont Sheldon Robinson Mahoney, we often deal with situations where our clients have inadequate uninsured/underinsured (UM/UIM) coverage. SUFFICIENT UM/UIM COVERAGE IS THE ONLY WAY TO PROTECT YOURSELF IF YOU ARE HARMED BY A DRIVER WHO IS UNINSURED OR HAS LIMITED INSURANCE. Connecticut law permits drivers to carry as little as $20,000 per person/ $40,000 per collision. Please review and follow the "DOS & DON'TS" set forth by the Coalition for Insurance Justice:
1. DO understand your policy. Can you answer the following questions?
- What is the amount of my Bodily Injury/Liability (BI) coverage?
- What is the amount of my UM/UIM coverage?
- What can I do to obtain Conversion Coverage or Double UM?
2. DO increase your UM/UIM coverage if possible.
While it is important to purchase umbrella insurance coverage, excess and BI coverage, such coverages afford you NO protection if an uninsured/ underinsured driver harms you.
You must increase your UM/UIM coverage and request Double Coverage. Example: Requesting Double UM coverage will increase your $300,000 UM limits to $600,000.
3. DO purchase Underinsured Motorist Conversion (UIMC) coverage.
UIMC coverage guarantees that you and your family will be afforded the full extent of the coverage you purchased, no matter how much is recovered from the driver who caused the collision. Otherwise, the amount that you received from the careless driver will be deducted from your coverage.
Example: At-fault driver pays out to injured person his $20,000 limited policy. Injured person has limited $50,000 without conversion. Injured person can only make claim for remaining $30,000 in coverage (50,000-20,000 = 30,000). With conversion coverage, injured person can make a claim for $50,000. If the injured person had Double UM, he will have $100,000 of coverage in addition to the $20,000 received.
4. DON'T be cheap — be smart.
A few dollars saved can result in inadequate coverage, which basically is no coverage at all. The minimum $20,000 worth of coverage per person and $40,000 worth of coverage per accident are woefully insufficient to cover the harms resulting from serious injury. Purchase the maximum amount of insurance that you can afford - it is money well spent.
5. DON'T "write down" your UM/UIM Motorist Coverage.
NEVER reduce your UM/UIM coverage to below the amount of your BI coverage.
6. DON'T be left without medical coverage.
The law no longer requires your car insurance to provide medical benefit coverage. If you do not have health insurance coverage, make sure to purchase optional medical benefit coverage through your car insurance. If you do have health insurance, the premium for this coverage may be better spent increasing your UM/UIM limits.
7. DON'T think "It won't happen to me".
Unfortunately, Tremont Sheldon Robinson Mahoney has seen many situations where clients have been injured by uninsured or underinsured drivers and these clients have had inadequate UM/UIM coverage. Hopefully, you will never need it but be smart and protect yourself.
If you have any questions about your coverage, please call any of our attorneys at Tremont Sheldon Robinson Mahoney.