The Point-and-Click Phenomenon.

In recent years, buying auto insurance has become as easy as purchasing a new song on ITunes.  However, this convenience comes with a price – the lack of an informed insurance agent who can guide you through the potential pitfalls.

The Problem with “Basic” and “Special” Insurance Policies.

The Department of Banking Insurance created two types of insurance policies that offer little-to-no liability coverage for individuals injured by their policyholders.  The first, called a “basic policy”, offers liability limits as low as zero and only as high as $10,000.00.   The second, designed for Medicaid recipients, is called a “special policy” and offers no liability coverage for their policy holders.  If you are injured in an accident involving one of these policyholders, your only recourse is your uninsured motorist or underinsured motorist coverage.  Unfortunately, many don’t know what uninsured motorist or underinsured motorist coverage is as “name-your-price Flo” or “the Gecko” don’t fully explain this to you on their website.

But Can’t I Sue Them Personally?

Many individuals who purchase these “basic” and “special” policies do so because their financial resources are limited.  In fact, the special policy can only be purchased by Medicaid recipients.  These factors will severely limit or bar your ability to recover any money personally from these individuals, so why leave it to chance?    

What Does UM or UIM Coverage Give Me?

Take a look at your auto insurance policy declarations page.  That’s the page that shows you the various types of coverage that you may (or may not) have.  The uninsured motorist (“UM”) coverage is sometimes listed together with underinsured motorist (“UIM”) coverage.  While carrying UM or UIM limits of $250,000.00 or greater is not financially realistic for everyone, you are, in effect, insuring your future.  This vital coverage will provide you recourse if you or your insureds suffer injury or death due to:

·        A basic policy holder;

·        A special policy holder;

·        An uninsured motorist;

·        A hit-and-run driver;

·        A policy holder whose policy limits are less than your own UIM limits; or

·        The driver of a stolen motor vehicle.

But It’ll Never Happen to Me.

In all my years of representing the injured or the grieving, no one has ever expected that a tragic event would happen to them.  Purchasing additional insurance after the fact is certainly too late.  A serious motor vehicle accident can result in an inability to work, loss of a business, or inability to perform everyday activities.  These possibilities make it imperative that you insure yourself from the irresponsibility of others.