School is out and before you take your family on the big summer vacation, it is a good idea to check your insurance to make sure you are protected.
Many people think car insurance only provides coverage in the event they are at fault. For a liability only policy (read: “the cheapest policy you can buy”) that’s true. However, there are many options available that you absolutely need to fully protect yourself in the event of a car crash; not only in the event you caused the crash but also in the event you are the victim in a car crash.
Liability Coverage
Liability coverage provides protection in the event you are at fault for a crash. In Ohio, the state-minimum required insurance is $25,000/$50,000. If you have state-minimum insurance, you are protected up to $25,000 in damages caused per person or, in the event of multiple injuries to different individuals, $50,000 total per crash. State-minimum insurance is simply not enough coverage to protect you and your assets in the event you are at fault.
Instead, I recommend a minimum of $100,000/$300,000 insurance coverage. Outside of catastrophic injuries or death, this is adequate protection for most car collisions.
If you own your home or otherwise have assets of value which you want to protect, you should consider more insurance as well as an umbrella policy (more on that shortly). After all, you are personally responsible for any damages that exceed your policy limits.
Uninsured/Underinsured (UM/UIM) Coverage
In some states, uninsured/underinsured motorist coverage is required for every policy. Ohio is not one of those states. It should be.
UM/UIM coverage protects you and your family in the event you are a victim of someone else’s negligence. Uninsured coverage provides protection in the event the negligent driver does not have any insurance. While state law requires all drivers to carry insurance, the sad truth is not everyone does. Underinsured coverage provides protection when the negligent driver doesn’t have enough insurance to cover your damages.
Too many times I have represented individuals seriously injured – traumatic brain injuries, broken bones, prolonged hospitalizations, etc. – left medically bankrupt because (1) there was no insurance or (2) not enough insurance to cover the damages.
Securing an uninsured/underinsured motorist policy protects you, your family, and your savings in the event you injured in a car crash. As with liability coverage, I recommend everyone have a minimum of $100,000/$300,000 UM/UIM policy. If you could afford more, buy it.
Medical Payment Coverage
Medical payment coverage (“med pay”) is provides benefits for out-of-pocket, uncovered medical expenses. Med pay is there to help in the short term to pay your portion of the medical bills while you recover and pursue a bodily injury claim.
Med pay limits start at $1,000 and I’ve seen them as high as $100,000. Most people have between $5,000 to $10,000 in coverage – which seems to be sufficient if used appropriately. Two caveats. First, for individuals with a high-deductible health insurance, I recommend a med pay policy that is at least $5,000 in excess of your deductible. Secondly, for people who do not have any medical insurance, $25,000 in med pay is recommended. Why? One trip to the emergency room after a car crash could easily cost that much.
Umbrella Policy
If you own a home, it is a good idea to purchase a personal liability umbrella policy (“PLUP” or “umbrella policy.”) An umbrella policy provide protection for claims in excess of your liability policy as well as your UM/UIM policy. This means you are getting additional coverage in the event you cause a crash that results in catastrophic injuries or death and it protects you and your family in the event you are a victim of a catastrophic injury or death.
Take a few minutes to review your auto policy’s declaration page to insure you have adequate coverage for your needs.
