Why You Shouldn’t Carry Minimum Or Inadequate Car Insurance.
If you or your family is struck by another car and injured, will there be sufficient funds to cover your or your family’s medical expenses and lost wages?
If the driver of the other car has inadequate insurance coverage, your policy might kick in depending upon the amount of general liability coverage and under insured motorist (UIM) or uninsured motorist (UM) coverage that you’ve paid for.
For example, if the other car’s driver carries $25,000 minimum coverage and you carry $500,000 (per person per accident), then you could collect up to the total liability limits of $25,000 of the at-fault driver, and assuming that your UIM is the same as your general liability, you would have available another $475,000 from your carrier to cover your family’s losses.
Given the number of underinsured and uninsured car drivers on the roads, your failure to carry adequate coverage to protect your family is a big mistake.
We recommend that the minimum insurance you consider having is liability coverage of 500/500/500 and have the same amount in underinsured/uninsured coverage.Thomas A. Leggette, J.D., Author:
Consumer Contracts In VirginiaVirginia Continuing Legal Education