I don’t sell car insurance, but as a lawyer practicing in the field of personal injury I frequently see people suffer because they have the wrong insurance coverage. Often, this happens because they purchased directly from an insurance company instead of an independent broker.

Many of my clients who have been seriously hurt in a car accident were struck by someone who had no insurance or only the minimum liability insurance coverage, which is $25,000 in New York and much less in many other states. Unfortunately, many of my clients were sold insurance policies with liability limits of $100,000 or $300,000, but were not sold matching uninsured and underinsured coverage.

Just this week, yet another new client had this problem. My client was a pedestrian crossing the street when she was struck by a car which fled the scene. The driver was caught shortly after leaving the accident, but the owner of the car only has the New York State minimum liability insurance of $25,000 and my client has serious injuries consisting of many broken bones including a fractured arm, leg and skull.

My client owns a car with liability insurance limits of $300,000, but she purchased the insurance from GEICO whose salesperson didn’t sell her underinsured coverage. GEICO does not use independent insurance brokers, but sells insurance directly to consumers through in-house sales agents.

For a small fee, my client could have purchased underinsured coverage of $300,000 which would have allowed her to recover $300,000 for her injuries instead of $25,000. Ironically, she did not need the $300,000 liability coverage to protect her assets. However, since you cannot buy underinsured coverage higher than your liability coverage, I would have advised her to purchase $300,000 liability coverage for the sole purpose of being able to purchase $300,000 underinsured coverage.

I have had many clients in this situation who lost their jobs because of serious injuries and incurred substantial debt. If they had matching underinsured coverage, the additional money available to pay their claim would would be a big help to pay their bills and get their life back together.

Underinsured motorist coverage will pay you money from your own automobile insurance policy if you have been hurt in a car accident by someone who was negligent for causing your injury and who had less liability insurance coverage than you did. Uninsured motorist coverage will pay you when the other car did not have any insurance coverage or the identity of the other car is unknown.

Underinsured and uninsured coverage is inexpensive and usually available in limits that match your liability insurance coverage. It is not available in amounts greater than your liability insurance coverage.

Underinsured and uninsured coverage is so important that a couple of states now require coverage limits matching your liability insurance limits, unless you decline the coverage in writing. Several years ago, I suggested to several New York State senators that they enact a similar law in New York.

I have also seen many clients who were not sold the maximum medical payments insurance, which costs me only $2.01 per month on my car insurance policy. This is particularly important for people who do not have a good health insurance policy. It is also beneficial for passengers who do not have health insurance.

Why should you buy car insurance through an independent insurance broker? The courts have defined the reason. There have been several “malpractice” lawsuits against insurance companies for failure to offer underinsured and uninsured motorists coverage limits matching the liability limits. However, when the insurance company sells directly to consumers, these cases have gone in favor of the insurance companies. The courts found that when a consumer buys insurance directly from an insurance company, rather than an insurance broker, the consumer is only buying insurance and is not paying for advice.

When you buy auto insurance from an independent insurance broker who represents several different insurance companies, you get the advantage of an insurance professional who can evaluate your needs and advise you accordingly. Additionally, only an independent insurance broker can provide you with a choice of insurance companies and premiums, so you get the best coverage at the lowest price.

Whether you buy your car insurance directly from an insurance company or through an independent insurance broker, always make sure that you purchase matching uninsured and underinsured motorist coverage and the maximum medical payment benefits.

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Liability insurance coverage is imperative to have as a driver. This insurance covers any injuries or damages to property that may occur during an accident. Two types of liability include bodily injury liability insurance and property damage liability insurance.

Medical insurance is different in that it focuses on the driver and passengers of the car. This will cover any medical treatment for the driver and the passengers. In addition, the medical insurance may or may not offer disability insurance and pain and suffering compensation.

Uninsured or under-insured drivers insurance will pay any costs that you or your passengers may experience if an accident should occur with a driver who is uninsured or underinsured.

Collision insurance deals with the cost of damage caused by a collision to your car that may affect the book value. Comprehensive deals more with damage caused by vandalism, natural disasters, theft or other kinds of damage.

There are several other types of car insurance. These include glass replacement insurance, towing insurance etc. These types of insurance are often not required and are not popular as they are often costly.

Now that you know what types of car insurance are out there, the next step is to find a credible insurance agent. The first place to investigate this is through family and friends. Referrals will help you sort those agents that you want to investigate further. You will want to speak with several different agents before you make your final decisions. Ask any and all questions you may have. That is what the agent is there for.

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Purchasing a cheap, used car is a great idea for individuals who are on a budget and looking to save money. However, it is still mandatory that, in order to drive the vehicle on public roads in the United States of America, the vehicle needs to be insured by an auto insurance company. Some individuals may choose still to not insure their vehicles, even though the laws of their state mandate that they have current auto insurance coverage on their vehicle(s) in operation. These people may be subject to heavy fines and penalties for operating their vehicles without insurance coverage in the event that they are caught without insurance.

There are a number of things for which a vehicle needs to be insured. It is not just a case of insuring the driver and the vehicle in the case of an accident damaging the vehicle. If this were the case, many people would be able to get away without having insurance since, to this extent, as long as they stayed out of accidents that were their fault, drivers could avoid any damages that may occur. Unless one of these mishaps occurs or an individual is pulled over, it would not be likely that the issue of insurance would come to the attention of law enforcement. However, individuals that do choose to drive without being properly insured are taking a huge risk. In addition to vehicle accidents, there are a number of other problems for which an individual’s insurance may be applicable.

Vehicles can also be insured against theft, fire, accident damage and third party use. Individuals do not need to insure their cars against all different types of damages or accidents. In general, individuals can choose between having comprehensive or liability insurance coverage. Deciding between which insurance coverage would be best for you as an individual can be more easily begun by first determining which type of auto insurance is affordable to you. Once you determine the insurance you need to have, you can begin to explore whether or not any additional coverage would be beneficial in your life.

Liability coverage covers damage caused to other people. This can include not just their property, but their body as well. Medical liability helps to ensure that the cost of a person’s medical costs and/or their death will be met. Comprehensive coverage extends to your own vehicle and the property of other people. Collision coverage ensures that your car and other vehicles involved in the collision are covered in the event that they are damaged and you are found to be the cause. Underinsured motorist property damage pays for the costs in the event that the liability insurance coverage had by the negligent driver is not enough. Regardless of the type of insurance that an individuals chooses to have, the laws of the United States of America do require drivers to insure their vehicles prior to taking them out on the road. Individuals who do not insure their vehicles, or who allow their insurance to lapse, can bring problems down upon themselves if they are ever caught in a situation where they need to, but cannot, provide proof of insurance.

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