Aitken, Aitken, & Cohn - A Law Corporation

Articles

All too frequently, terrible and tragic accidents are caused by uninsured or underinsured drivers.  The result is catastrophic harm to individuals and/or families - leaving entirely uncompensated victims who face insurmountable expenses and economic devastation.  It should come as no surprise that drivers with the worst records and who cause the most accidents are more likely to be either uninsured, or underinsured (i.e. they carry the minimum insurance allowed by law.)  Because drivers with poor records must pay much more money for insurance coverage, it is therefore more likely that they will be unable to afford the higher cost for insurance.  Likewise, those who are unable to afford insurance are also less likely to adequately maintain their vehicles from a safety standpoint.  As a result, it is statistically likely that those who cause the most accidents are also those most likely to be uninsured and/or underinsured. 

Surprisingly, however, the general public (on the whole) is quite unaware of these facts — and equally unaware of how to protect themselves and their families from the danger.  The answer is “uninsuredâ€? or “underinsuredâ€? motorist coverage, and the cost is surprisingly affordable.  This coverage is the only insurance coverage that you can buy which actually compensates YOU and YOUR FAMILY when someone else causes an accident, (as opposed to “liabilityâ€? coverage which only compensates others who might be harmed if you cause an accident.)  By law, your insurer must offer you the opportunity to purchase uninsured/underinsured motorist coverage with limits equal to your liability coverage.  Our advice: Don’t turn it down!

 A SOBERING EXAMPLE

If you follow this advice, you will protect yourself and your family from going uncompensated when an uninsured driver causes you harm.  Consider the following example: A client we recently consulted with was rendered totally disabled when she was riding as a passenger in another vehicle.  Unfortunately, the person who caused the accident only had the minimum allowable insurance coverage of $15,000 per person per accident.  The $15,000 insurance payment did not even cover a small percentage of the client’s medical expenses — much less compensation for her future medical and attendant care needs, not to mention loss of earnings, pain and suffering and emotional distress.  Thus, the client faced a multi-million dollar loss, and the “at-fault partyâ€? had only $15,000 of available insurance coverage (and no significant personal assets to speak of).  The financial consequences could have been devastating.

 UNINSURED MOTORIST COVERAGE TO THE RESCUE!

Fortunately, the client had substantial uninsured/underinsured motorist coverage with limits of $100,000 per accident, and backed by an “umbrellaâ€? policy with an additional one million dollars of coverage.  This was insurance she had bought from her own insurance company to protect herself.  The result was the ability to collect over one million dollars from her own insurance company, (which still did not adequately compensate her for her loss — but at least prevented total financial devastation which would have surely resulted had she not had the underinsured motorist coverage).
         
 BE ON THE LOOKOUT TO MAKE SURE “Uâ€? ARE COVERED!

Unfortunately, all to often we also consult with clients who after catastrophic accidents do not have uninsured/underinsured motorist coverage (or their coverage is minimal in limits).  To remedy this problem, we recommend that all consumers carefully review their coverage to be sure that they have adequate limits in the event of an accident caused by an uninsured/underinsured motorist.  You can check on this coverage by contacting your insurance agent, and/or by looking at your insurance policy “declarationsâ€? page to determine if you have “Coverage Uâ€? (and in what limits).  Keep in mind that the minimum limits allowable by law are quite frequently not even close to adequate to cover the medical and economic loss associated even with moderate injury accidents.  Indeed, coverage at these minimum levels is often just as bad as having no coverage at all.  Unfortunately, many insurance companies and their agents fail to bring this to the attention of their insureds — with the result being consumers who are under- protected against the devastating losses that can be caused by irresponsible uninsured/underinsured drivers.

If you have questions or concerns about your insurance, feel free to give us a call.  Or, contact your insurance agent to assure you have adequate underinsured/uninsured motorist insurance coverage in place to protect you and your loved ones.

Contact Aitken * Aitken * Cohn today to learn more.

3 MacArthur Place, Ste 800
Santa Ana, California, 92707
Toll Free: 866-434-1424