Imagine as you take to the road this summer that you get into a car accident. You are banged up but otherwise fine, and you assume that because you have insurance that everything will be okay. The other driver, however, has let their coverage lapse and so none of the minor medical bills and damage to your car will be covered, and you have to foot the bill for $2,000 all told.
That’s a fairly unfortunate but tame scenario compared to the possibility of a catastrophic car accident where the other driver is uninsured or underinsured. Without coverage, your family could be on the hook for tens of thousands of dollars of medical and repair costs, while you’re dealing with hospital visits and potentially not having a vehicle.
For these reasons and more, you need to evaluate whether your insurance provides enough coverage, and speaking with an independent insurance agent can be your first step to peace of mind.
Coverage Differences
While the law only sets rules on minimum coverages, in real life, car accidents can often exceed the amounts outlined in minimum liability policies. For instance, coverages are typically represented by two numbers, such as 25/50. These numbers, when multiplied by 1,000, are the amounts that the insurance company will pay in an accident. The first number is what they will pay per person, and the second is what they’ll pay in total for the entire cost of the accident.
People who have overly low coverage amounts are considered to be “underinsured.” This happens when the bare minimum liability coverage is purchased just to meet the requirements of the law. There are, of course, people out there who don’t have insurance at all, and in those cases like in the example above, you won’t get any financial payment, and your bills will fall squarely on your shoulders alone.
By expanding your coverage, you can prevent financial loss in the event of a motor vehicle accident where the other driver is underinsured or has no insurance at all.
Consider the following common coverage types for your policy:
- Uninsured motorist insurance in in covers you when the other motorist doesn’t have insurance. It will pay for your (or your passenger’s) medical bills as if the other driver had liability coverage.
- Underinsured motorist coverage will pay for any medical bills the other motorist’s coverage will not. This includes your passenger’s medical bill as well.
- Uninsured motorist property damage coverage will help you pay for repairs to your vehicle, or replace it if it’s totaled in the accident when the other person doesn’t have coverage.
Why Working with an Agent Matters
When you shop online for insurance, you often miss out on the nuances of your particular driving region, the risk factors in your area, and ultimately you lose the personal touch that an agent provides. They can evaluate your financial needs, working with dozens of insurance companies to find the best price and coverage for you.
Right now, many insurance companies are offering refunds on premiums to drivers because there are simply less people on the road. Additionally, many companies are offering flexible payment options that sound good on paper, but they also make it easier for a person’s insurance to lapse. This means there are many more people on the road that are underinsured or completely without insurance, making driving with just liability coverage a much riskier prospect.
Taking the Time to Contact an Agent
Independent insurance agents like Nick Wesley at River City Insurance in Mauston, WI are serving the needs of the Mauston population, as well as the surrounding areas, including La Crosse to Whitewater & areas in between. Offering professional advice and courteous service, Nick can help you navigate the world of buying auto insurance so you get the best coverage that fits your needs at the right price. Give him a call today and see what a difference an insurance agent can make.
