The Auto Insurance You Thought You Purchased - But Didn't

               When an individual is seriously injured or killed in a motor vehicle accident, the general practice is to first look to the insurance coverage available under the automobile insurance policy covering the party responsible for the accident. This coverage is called “Bodily Injury Coverage” and must be purchased before a car, truck or motorcycle can be legally registered in Massachusetts.  Bodily Injury Coverage is the insurance coverage that would be available to you or your household members in the event of a serious accident. The minimum amount of Bodily Injury Coverage required to legally put a car on the road in Massachusetts is currently just $20,000. This means that if a negligent driver causes serious injury or death to you or a member of your household, the most you could recover from that driver’s insurance company would be $20,000. While in very rare instances the personal assets of the negligent driver may supplement this coverage, in the overwhelming percentage of motor vehicle-related injury claims, Bodily Injury Coverage is the only source of financial recovery available to the victim.

            There are however two other “parts” of the standard Massachusetts automobile insurance policy that provide additional coverage to you and your household members in the event they suffer serious injury or death as a result of an UNDER-insured or UN-insured motor vehicle operator. The problem is most victims of motor vehicle negligence don’t realize that they lack this coverage until after the accident takes place. 

            In recent months, Parker Scheer has been retained by a growing number of clients seriously injured in motor vehicle accidents where no under-insured or un-insured coverage was available to the victims. Nearly all of these drivers were under the false impression that they had purchased “the maximum insurance” at the time of the accident. It was not until we met with these victims, following their accidents, that we had the unpleasant duty to inform them that what they had purchased was actually the minimum coverage needed to register their vehicles – that there was no additional coverage available to them.

            We believe that the current economic downturn has created a very dangerous climate for Massachusetts drivers. It is our belief that current conditions have lead a growing number of Massachusetts drivers to decrease their motor vehicle insurance coverage limits as a means of reducing general household expenses; a dangerous mistake with potentially catastrophic consequences for both those who cause injuries to others as well as to those who suffer serious injuries or fatalities.

            What is perhaps most frustrating of all is just how little it costs per month to increase your under-insured and un-insured motorist coverage limits to the maximum coverage your auto insurance company is legally required to sell you. That answer can be easily obtained through a single telephone call to your automobile insurance company.           

            Don’t wait for a serious accident to occur before you take this important step. Call your automobile insurance company today and learn what it costs to increase your un-insured (Part 3) and under-insured (Part 12) coverage limits to $250,000 per person ($500,000 per accident) levels. Increasing Part 3 and Part 12 coverages to these recommended limits may require you to increase your Part 5 (Optional Bodily Injury to Others) coverage to equal limits, but the increased cost is greatly outweighed by the potential future benefits.

            If you have any questions about any of the recommendations contained in this advisory, do not hesitate to call us directly. There is absolutely no charge to discuss this important issue with one of our experienced trial attorneys. Or telephone your automobile insurance company or agent to learn more about your options and costs.

            Our hope is that neither you nor any member of your household ever needs the insurance coverage described in this letter. But should events occur which would make such coverage available to you or a family member, we hope you never find yourself without it.

      

Comments

[Franco]

Thanks for the very informative post. It is sad how little people know about their own insurance policy... Knowledge is power! And money ;)

[Mr. Insurance]

Thank you very much! Too sad to see how little people know. Hope it all changes soon!

[Fog Light]

Excellent post.I really like to read this.

[Fog Light]

Thanks for the very informative post.