Getting the Most from Your Automobile Insurance

What You Need to Know About Car Insurance

While we don’t often think about the risks of driving to work, going to the grocery store or picking up our children from a friend’s house, the unfortunate truth is that we are in danger of being involved in an accident every time we get into a car. According to the most recent statistics available from the U.S. Department of Transportation, nearly 2.7 million people were injured or killed in motor vehicle accidents in 2005.

This is, of course, why we have automobile insurance. Auto insurance is meant to protect us from financial loss in the event of an accident. However, many individuals who have been injured in motor vehicle accidents have discovered that they had a false sense of security in their automobile insurance policies. Often those who have been seriously injured in an accident find that they have purchased insufficient insurance coverage or that their insurers are dragging their feet when it comes to paying their claims. Automobile insurance customers face many confusing coverage choices. For instance, selecting the “limited tort” coverage option might seem appealing because it reduces your premiums, but in reality, it is crucial to have “full tort” insurance to ensure complete protection for yourself and your loved ones.

Minimum Coverage: Is It Enough?

Almost every state requires drivers to carry certain minimum amounts of automobile insurance. In Pennsylvania, for example, drivers must have liability insurance that covers bodily injury and property damage, as well as personal injury protection. Pennsylvania law sets the minimum bodily injury liability limits at $15,000 per person and $30,000 per accident. This means that if you injure someone in a car accident, their damages for which you are found liable are only covered up to $15,000 per person or $30,000 per accident. The minimum coverage for property damage liability is $5,000. The same minimum limit applies to personal injury protection, which pays medical bills for you and others covered under your policy, regardless of fault, up to your policy limit.

The problem is that these minimums are rarely enough when serious injuries or fatalities occur as a result of an accident. This means that any amounts above your policy limits for which you are found legally responsible will come out of your pocket. For this reason, insurance industry professionals and consumer groups recommend purchasing at least $100,000 of bodily injury protection per person and $300,000 of protection per occurrence. You may also want to consider an “umbrella” or “excess liability” policy to further protect your assets and your family. Such policies typically provide an additional $1 million or more in coverage beyond your applicable policy limits at less than a dollar per day.

Full Tort and Limited Tort

When Pennsylvania drivers purchase automobile insurance, they are asked to select either “full tort” or “limited tort” coverage. We recommend that all our clients select “full tort.” Limited tort coverage reduces premiums because under this option, you waive your rights to recover certain types of damages (such as pain and suffering) unless you suffer serious injuries. In other words, when you select the limited tort option, you or your loved ones are not allowed to sue a negligent party for non-economic losses unless you have been killed, suffered disfigurement or sustained injuries that seriously impair a bodily function. While limited tort may seem like a viable option for saving money, injuries that many people would consider serious, such as shattered bones, may not meet the law’s very narrow definition of the term.

Full tort coverage, on the other hand, does not carry such restrictions. When you select full tort coverage, you are permitted to file a lawsuit against any negligent party in a motor vehicle accident. This means that an injured party may seek compensation for any personal injuries or damages sustained as a result of an accident. Full tort coverage does cost more than limited tort coverage, but for most people, it is the best way to protect their and their families’ rights. It’s better to carry a higher deductible than to waive full tort coverage.

New Jersey drivers are presented with a similar choice, though the terms used to describe the options are different. In New Jersey, the limited tort equivalent is known as a “lawsuit limitation” or “verbal threshold” option. The corresponding full tort option is called “no limitation” or “no-threshold” coverage.

Uninsured and Underinsured Motorist Insurance

Many of us take to the road without thinking about what would happen if we were involved in an accident with an uninsured driver, or with a driver whose insurance does not fully cover our injuries. In Pennsylvania and New Jersey, drivers may guard against other motorists’ insufficient or nonexistent coverage by purchasing Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverage. UM and UIM insurance will pay you and others covered under your policy if you are injured by an uninsured driver or by a driver who lacks sufficient policy limits to fully compensate you. UM coverage also applies to hit-and-run incidents. UM and UIM coverage are not mandatory, but because there are many uninsured and underinsured drivers on the road, purchasing this type of insurance is a good idea.

If you opt to purchase UM and UIM coverage, you may wish to go one step further and “stack” this insurance. Stacking UM and UIM coverage provides access to benefits under the policies covering each of the automobiles in your household. For example, if you have two vehicles and each has UIM limits of $25,000 per person and $50,000 per accident, your UIM coverage would actually be $50,000 per person and $100,000 per accident, even though only one or none of your vehicles was involved in the accident. 

How We Can Help You

The information presented here only scratches the surface of automobile insurance options and claims. The attorneys of Stampone Law know that automobile accidents are traumatic and often result in physical, financial and emotional injuries. When you or a loved one has been injured in an accident, the last thing you want to do is fight with insurance companies. We are here to act on your behalf so that you can concentrate on getting better and taking care of your family.

Our knowledgeable attorneys are always happy to sit down with you to evaluate your needs. In the event of an accident, we can also review your policy to determine what coverage applies to your situation and how to best secure those funds. If you have been injured in an automobile accident or have any questions about your motor vehicle insurance, please contact us for assistance. We are here to provide you with whatever assistance you need. At Stampone Law, we strive to make your life easier, every step of the way.