Secrets of Your Car Insurance Coverage
Author: Joshua Myers

When it comes to car insurance, most people (even my
parents) think that "full coverage" has them fully covered.
This couldn't be further from the truth. In reality,
"full coverage" is only liability and property coverage.
These do little to protect you from others. Think about
it, what's the more likely scenario - you causing a wreck,
or you being hit by one of the thousands of crazy drivers
surrounding you. I want to tell you about three types of
coverage every driver needs to have - but few know about.
It's very unlikely your agent told you about them because
they are so cheap. And unlike liability coverage, the
insurance companies can't raise your rates if need to
collect under them due to another's negligence.

Uninsured Motorist Coverage (UM)

Ok, you don't really have to add uninsured motorist
coverage - you already have it. In Missouri, every
insurance company has to give you (for a price) a minimum
of $25,000.00 coverage. The problem is $25,000 is not
enough!

UM coverage applies when you are injured due to the fault
of an uninsured driver. I see this scenario all the time.
Usually, it's because the people driving without insurance
are often the worst drivers. If you are driving without
insurance - don't be mad at me. But if you show me an
uninsured driver, I'll bet I can pretty accurately guess
how many driving citations they've had. The problem I
often see is that a potential client has suffered
devastating injuries because an uninsured driver hit them.
They've got mounting medical bills and they're losing time
- and money -- from work. The problem is the guilty party
doesn't have any insurance. Where do I go to get this
client money? We go to your insurance company who stands
in the shoes for the guilty driver - and best of all - it
doesn't raise your insurance rates! This is why UM
coverage is a great protection for you and your family.
But you have to raise the policy limits of the coverage.
Tell your agent you want at least $100,000 in UM coverage.
What you'd be surprised to know is that all this extra
coverage is only dollars more.

Underinsured Motorist Coverage (UIM)

What about the situation where you are in a bad wreck and
the guilty driver has $25,000 of insurance coverage - the
state minimum. He's not an uninsured driver, but his
policy limits are not enough to pay for all your medical
bills, pain, and lost wages. That's where UIM coverage
comes in. It is coverage you carry for the scenario where
you are hurt by an insured driver, but they don't have
enough insurance to fully compensate you. So your
insurance company coughs up the extra cash (OK - so maybe
your insurance company will fight about how much it really
takes to fully compensate you - but that's when you call
me.) But here's the trick - if you really want to make
sure this coverage is not worthless, you have to buy a lot
of coverage - at least $100,000. I'll tell you why in the
next newsletter (Hint: it's to make sure your insurance
company doesn't use the fine print to weasel out of
paying). But again, don't think a lot of coverage costs a
lot of money. Call your agent and ask - you'd be shocked
at how cheap it is. I carry $300,000 in UIM coverage for
less than $20 a car.

Medical Payments Coverage (MPC)

UM and UIM coverage only apply if someone else is at fault
for your injuries. With MPC, it doesn't matter who is at
fault. The coverage simply reimburses you for medical
bills you incur due to injuries while using the car. I
suggest at least $5,000 in coverage (I carry $10,000).
It's really cheap. And better yet, it allows you to
double-dip when another driver is at fault. When someone
else hits you, you can collect from their insurance company
for your medical bills. You also are entitled to be
reimbursed under your MPC from your insurance company for
those same medical bills!


About the Author:

St. Louis Personal Injury Attorney Joshua P. Myers explains
the different types of automobile coverage. Licensed in
Missouri and Illinois, his practice is exclusively limited
to injury law and he is an expert in insurance law. More
information can be found about Joshua P. Myers at
http://www.joshmyerslaw.com