When I get a call from an auto accident victim, one of the first questions I ask is what type of auto insurance do you have? They always respond: “I’ve got full coverage”. People always think they have full coverage auto insurance and they rarely do. What does full coverage mean and how much insurance do you need to protect yourself? Check out this video to find out.
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“I’ve got full coverage insurance.” I hear it every day from people involved in accidents. But what does that mean? And why is it important? It’s unclear what exactly people mean when they say this. But almost always people do not know how much car insurance they have AND what type of insurance they have. And they definitely don’t know how much insurance they need.
Every state has its own mandatory insurance limits. That’s the minimum amount you need to be in compliance with the law. In my home state of Illinois its $25,000. For a list of the requirement in your state, check out this site:
This means that if you are involved in an accident, you have $25,000 in insurance to compensate the party you hurt. Or, alternatively, if you were the innocent party, you have $25,000 in uninsured motorist coverage to protect you in case the other guy is uninsured.
So, having the minimum limits does not mean that you have “full coverage”. It means you have the minimum required by your state. But you may not have several types of coverage that you need and it most likely means you do not have enough insurance.
So first, in terms of the amount of insurance. I would highly recommend that you consider having at least $100,000 of uninsured motorist and underinsured motorist protection. If you can, you purchase more. I have $250,000 in coverage. This means if I get hit by an uninsured driver or someone who has insurance but a small amount of it, you are covered up to the limits of your policy limits.
You should also have collision coverage. If you have collision coverage, it means that if you get involved in an accident, you can use your own insurance to get your vehicle fixed. That will significantly reduce the amount of time it takes to get your car fixed. It will also protect you if you get hit by an uninsured driver.
You can add something called comprehensive coverage. With comprehensive coverage you can get your car repaired if it gets damaged in a non-vehicle related accident. Like if it gets hit by lightning or a tree falls on it.
Medpay insurance is something you can add to your policy. Medpay or medical payments coverage is a small add-on to an auto insurance policy that covers the first $2,500 or $5,000 or even more, of your medical bills. This is a great way to pay for your co-pays or deductibles or if you don’t have health insurance.
You will likely need a rental car while your car is being repaired. So, you can add Rental car coverage to your policy. Otherwise, you may get stuck with the bill while you’re waiting for the driver’s insurance to accept responsibility for the accident.
Finally, you can purchase gap insurance. If you purchase a new car, you have the option of buying gap insurance. If you get in an accident and the car is totaled, the insurance company will only compensate you for the actual value of your vehicle. This value could be much lower than what you owe on the vehicle. Gap insurance will cover the balance
So why do you need so much insurance? It is estimated that approximately 13% of all drivers are uninsured. The next time you are driving, count 10 cars around you. Chances are that more than one of them are uninsured. And if you’re in Florida, its estimated that 27% of all drivers are uninsured.
Now check out this video for more info on this topic, please subscribe to our channel and if you have questions for an auto accident attorney, feel free to reach out to me.