I had two very unpleasant experiences recently that continue to solidify my opinions regarding insurance coverage.
YOU NEED UNINSURED/UNDERINSURED MOTORIST (UIM) COVERAGE. Call your agent right now and check whether your policy has UIM coverage, we'll all wait. Do it! Don't read another word until you've called you agent to check…
Alright, did you also check the amount? We'll wait…
Oklahoma requires insurance coverage on your vehicle. We've discussed previously (see here and here) what type of coverage you should have. Most finance companies require that you also carry collision insurance on your vehicle. This protects their lost value if you're involved in an accident and your car cannot be repaired.
Aside from that, if you don't have UIM and medical payments on your insurance policy, you're going to lose money if you're injured in an automobile accident.
However, it's not just about having the coverage (some is better than none though), it's about having the right amount. Here are my two situations:
Situation 1: Pedestrian gets hit by a car while crossing the street. The driver's insurance had lapsed (another problem with our current system), so the pedestrian needs to rely on UIM or "med pay" coverage to pay medical bills, lost wages, etc. Problem: pedestrian has "full coverage" insurance, but does not have UIM or med pay on the policy. Pedestrian has an enforceable judgment, against a judgment-proof debtor. No money available.
Situation 2: Driver gets severely injured in an automobile collision. Driver's medical bills exceed $100,000. Driver has UIM coverage, but only an amount of $25,000. UIM carrier pays the insurance benefits, however, driver's health insurance carrier claims a subrogation interest in the UIM proceeds. After payment of attorney fees, costs, and discounted subrogation, driver nets nothing. No excess money available.
Admittedly, situation 2 is more drastic than the other, but both are rather common occurrences. The problem is, the coverage an individual believes he/she has, may not be adequate.
Get UIM now. It's hard to evaluate how much you'll need, but a good suggestion is at least $50,000. If you'd like to discuss your insurance coverage, contact us or call us at: (405) 748-0318.
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