Do you have sufficient motor vehicle insurance?

28 Feb

Whether due to the economy or otherwise, many motor vehicles on the road today are not covered by liability insurance, or have grossly inadequate insurance. If an uninsured or underinsured driver causes injury to you or your family members in a car accident, you may need to rely on the limits of your own insurance to cover the damages.

Many people have decided not to purchase insurance or believe they cannot afford coverage that has coverage limits more than the minimum limits required by law.  Moreover, some insurance companies are not offering liability coverage with limits that would be adequate to cover the injuries of someone in another vehicle who suffers severe injuries.    

To protect yourself and your family, contact your insurance agent about the coverage you maintain to make certain you have adequate insurance for yourself and your family.  You need insurance that will be available to cover potentially substantial injuries caused by another driver.  If the other driver does not have insurance, you need adequate uninsured motorist coverage (UM coverage).  If the other driver does not maintain sufficient insurance, you need to rely on your own underinsured motorist coverage (UIM coverage).   

The amount of UM/UIM coverage you maintain on your own motor vehicles is very important.  If you do not purchase adequate UM/UIM coverage, your family could suffer a financial catastrophe if someone in your family suffers seriously debilitating injuries due to the fault of another driver.  To guard against a potential disaster such as this, you should try to maintain UM/UIM coverage with limits as high as you can obtain from the insurance company you select — and that you feel you can afford. 

While coverage limits of $1 million may seem high, very serious injuries may result in substantial wage loss, loss of earning capacity, treatment expenses and other financially significant damages that can and often do exceed that amount.  Thus having adequate insurance to cover potentially substantial damages is so important.  You cannot expect others to maintain the amount of insurance coverage you may need to avoid a financial catastrophe.

If you have any questions about your rights and obligations under the law with regard to motor vehicle insurance claims and damages, talk to the attorneys at Thomsen Nybeck.

This blog entry is written by Bill Sjoholm, a shareholder at Thomsen Nybeck. Bill is a senior trial lawyer in the litigation section of Thomsen & Nybeck and the head of the firm’s Litigation Practice group. He concentrates his practice in the areas of employment law, commercial law, plaintiffs’ personal injury, community association law, and general civil litigation. In addition to practicing before the state and federal courts, Bill has been active in pro bono activities, including serving on the Minnesota State Bar Association Civil Litigation Governing Council, the Board of Directors for Central Minnesota Legal Services, the Lawyer Referral Oversight Committee and the Volunteer Lawyer’s Network.

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