What is the difference between liability and uninsured motorist coverage?
Tenant Tip #12 – One More Insurance Tip…
You may recall I mentioned the value of renter’s insurance last time. Here’s one related thought.
Bet you own a car. Okay. Check your insurance policy. There are two parts to review and consider: liability coverage and uninsured motorist (so-called “UM”) coverage. Many of accident victims I see in my law office lack sufficient uninsured motorist coverage.
Does it matter… Yes, you bet and here’s why!
You need basic minimum liability coverage, at least equal to the state minimum, and more than that if your assets exceed the state limit. BUT REMEMBER, LIABILITY COVERAGE PAYS SOMEONE YOU HIT AND INJURE.
My experience, however, has been you are more likely to get hit by an uninsured driver than to cause an accident yourself. So, while it’s important to insure drivers against your negligence, it’s more important to protect yourself against everyone else.
IT’S THE UNINSURED MOTORIST PART OF YOUR POLICY THAT PAYS YOU IF YOU GET HIT AND HURT!!!!!
So, while its good to focus on liability coverage, it’s the UM coverage that will protect you and your assets and family!
Also, take a look at the so-called “MED PAY” portion of your auto accident. It will pay your medical bills if you get hurt in a car accident. You can double or triple that coverage for peanuts.
Remember, you need to carry minimum liability insurance. And, you should carry enough to protect your assets, but never forget that UM coverage is the part of the policy that protects YOU. PAY and PROTECT YOURSELF FIRST!
Tim Murphy
Padzilla.Com
