Personal Injury Law
Oct
6
Written by:
10/6/2011 8:38 AM
What Insurance Companies DON’T Want You to Know
All insurance companies have attorneys who give advice to the adjuster, making sure the company pays out as little money as possible to you. What you do not know can cost you PLENTY…. Let us help!
Insurance agents are in the business of selling insurance. Typically, they know little, if anything, about the insurance claims process. Insurance adjusters process claims with the best interest of the insurance company in mind. Their goal is to maximize company profits and minimize your net recovery from your loss.
Not all insurance is created equal and you get what you pay for. Some insurance companies offer discount rates. On the surface, it may look like you are getting a good deal. However, if the policy lacks medical payment coverage or excludes punitive damages, it probably is not such a good deal! Make sure you are comparing apples to apples and getting the protection you need.
Auto insurance is sold a la carte. In other words, you pick individual items from a menu of coverage choices. There is no such thing as full coverage, which is sales talk to make the customer feel good after buying insurance. You actually purchase insurance piece-by-piece, with liability coverage (minimum limits of 25K/50K/25K) the only piece required by law.
- Do you want your car fixed if you are at fault? Get good collision coverage!
- Do you want your car paid for, if it is stolen? Better get comprehensive coverage!
- Do you want to protect yourself if an uninsured/underinsured driver injures you or your family? Make sure to get UM coverage!
- Do you want your medical bills paid if you get into an accident, whether or not you are at fault? BUY sufficient medical payment coverage!
Med-Pay (as it is known in the insurance trade) is an optional auto coverage choice. It covers you or anyone else who gets hurt in your vehicle (driver or passenger), and is used to satisfy your medical bills. It provides coverage up to a certain dollar amount for each person in the car. Also - if you or a family member is hurt in someone else's car, your Med-Pay kicks in if they don't have Med-Pay coverage; and if they don’t have enough Med-Pay to cover your medical bills, your Med Pay can be added to theirs, to make up for the shortfall.
Insurance companies do not promote Med-Pay because it offers great consumer protection (especially today when health insurance coverage often falls short). But it is not a money-maker for insurance companies, so they don't push it. If you can afford it, don’t got without Med Pay! And do yourself a favor: Get at least $5000 in Med Pay coverage. After all, an ambulance ride can easily cost over $1000 today!
Finally, don’t try to hide your teen driver from your insurance company, in order to maintain lower insurance rates. If you do and your teen is at fault in an accident, your insurance company may deny coverage for your failure to report the teen as a driver on the family vehicle. Face it – it’s just not smart and you may open yourself up to much greater bills!
Bottom Line: Most people protect their car and fail to protect themselves! Make sure you secure enough liability insurance to protect your assets AND sufficient Med-Pay and UM (Uninsured/Underinsured motorist) coverage, to protect yourself and your family, in case you are ever injured in a motor vehicle accident.
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