In these tough economic times, a number of people are dropping their auto insurance to save money.  This is illegal an unwise, but a recent study by the Insurance Research Council (IRC) estimated that approximately 16.3% of motorists will go without liability insurance this year.  Thus, our roadways are more dangerous than ever because if you or a family member is injured in an accident caused by another, there is a 1 in 6 chance of that the other person has no insurance to compensate you for your injuries.  Furthermore, because of the low limits of insurance required in California, if you or a loved one is seriously injured there is a strong possibility that you will never receive the compensation you need to put you back where you where prior to the accident.   Thus, you should review your limits of liability insurance and make sure you have uninsured motorist coverage.

It is likely that you only have the minimum liability insurance coverage required by California, but you will see that those limits are too low for most people and they will not fully protect you, your loved ones, or your assets if you are involved in anything but a minor injury accident.  Thus, The Hundley Law Firm  recommends you purchase more than the minimum coverage, unless you are driving a very inexpensive car, have no assets to protect, and have excellent health insurance that would cover you and your loved ones for injuries that could result from and accident.  Even then you should increase your limits of insurance and have uninsured motorist coverage if you can afford it.

California requires that you have minimum liability insurance as follows: 

• Bodily injury liability for one person in an accident  — $15,000;
•  Bodily injury liability for all people injured in an accident  — $30,000;
• Property damage liability for one accident – $5,000

We believe these limits are too low for most people and note that in Alabama, the minimum requirements are $25,000/$50,000/$25,000.  If you are at fault for an accident and someone else is injured, $15,000 may not cover his/her medical expenses or if you injure several people, $30,000 may not be enough to pay for all of their medical bills.   If this happens then your assets are at risk to pay the medical bills and to pay for the pain and suffering of the injured people.  It is also easy to see how running into a Mercedes, Lexus, or BMW could result in more than $5,000 in damage even in a rather small accident.     

We believe the minimum insurance limits that most people should have are $100,000/$300,000 limits of bodily injury liability and $50,000 for property damage.   The additional cost is usually worth it and you should always ask your insurance agent to quote you the cost for such coverage so you can make an informed decision.   You also should have uninsured or underinsured motorist coverage at these same levels or more, so should you be unlucky enough to be injured in an accident caused by the 1 and 6 people that is driving without insurance, you can turn to your insurance company to pay for your medical bills, lost earnings, and pain and suffering damages.  You also need to have such coverage if you are injured in a hit and run accident or if you are seriously injured by a motorist that only has a $15,000 limit of insurance.  Again ask your insurance agent to quote the costs for the various levels of uninsured/underinsured motorist coverage so you can make an informed decision.  Uninsured or underinsured motorist coverage is even a wise decision if you have full medical coverage, as it can pay for your pain and suffering damages and lost earning damages that would not be covered and you won’t have to deal with co-pays or deductibles.

It’s easy to dislike the money you spend on insurance, but insurance is usually needed at some point and the additional costs of increasing your limits of coverage are usually worthwhile.   It is important for you to know what coverage you now have and determine if you can afford to increase your limits.   Then if trouble strikes, you’ll be ready and know you did everything you could to protect yourself , your family, and your assests.  

Stay safe and if you have been injured in an accident and need help, please feel free to contact us at info@hundleylawfirm.com or 310-348-8106.  We are here to help!

The Hundley Law Firm – Litigation in Partnership with clients!