Insurance & the Importance of Proper Coverage by John Fuller

This is a blog posting by Attorney John R. Fuller of the Greater Denver Metro Area. Attorney Fuller is an experienced Personal Injury and Trial Attorney. I decided to post his blog on mine as well because I believe that the information he posted is too important to not be found online

Insurance is for YOU!!
Increasingly, Americans are purchasing sophisticated products via the Internet. This trend has resulted in many people purchasing products that they know little about and which ultimately fails to meet their needs. One such example is automobile insurance. The following is designed to help you understand what the various insurance products are and whether you need these products.

LIABILITY: Liability insurance covers losses sustained by the OTHER DRIVER when you cause an accident. Lots of people think when they have $25,000 to $250,000 of "coverage," that they have this much insurance for their family if an accident happens. This is not true. Liability insurance is required in all 50 states. The theory is that you must have coverage for an innocent victim that you negligently injure, but you are free to drive without coverage for yourself.

COMPREHENSIVE: Comprehensive, or "full coverage" is designed primarily to cover your vehicle and other property in the event that YOU or another authorized driver cause an accident. This coverage may also be used when someone else causes an accident and either doesn't have insurance or doesn't have enough insurance. But keep in mind: comprehensive insurance is for PROPERTY only, not injuries.

UM/UIM: Look to the left and right on your drive to work and ask yourself if the person you see looks like they have enough insurance. Call me crazy, but I don't trust the other guy to have enough insurance to cover myself and my family in an accident, and you shouldn't either. Studies have shown that as many as one in six drivers are uninsured. Even if you have great, high limits liability insurance, there may be no coverage for yourself and your family in the event of an accident. The solution is an insurance product called "UM/UIM" which stands for Uninsured or Under-insured Motorist Coverage. As the name implies, this coverage if for claims where the other driver either fails entirely to have insurance, or perhaps has only the state minimum for an accident that requires much more. If the other driver has insurance, that policy will pay first, but after that, you will be dealing directly with your company. Unlike the adversarial relationship you may encounter in dealing with the other driver's company, your insurance company has a duty of good faith when dealing with their own clients.

MEDPAY: Medpay is a small policy that is designed to cover the initial emergency medical expenses incurred in an accident for you or a covered passenger. It is not available for the other vehicle or passengers. While this of course means the other driver cannot make a claim against your Medpay policy, it also means that you must have this coverage on your own policy for yourself and your family. On January 1, 2009, Colorado now makes Medpay mandatory unless the consumer opts out. As mentioned above, when scrolling through the option screens online, be careful you don't opt out of this important coverage.

Insurance is for YOU!! Only you can protect your family when accidents happen, and accidents DO happen. Insurance is a complicated product. No two consumers are exactly the same. Before evaluating products like automobile insurance online, be sure you know exactly what each component covers. When in doubt, consult an old-fashioned agent. Many times, you will come out with a lower payment and better coverage. We also offer customers of our firm free insurance evaluations for life. Just call us and we can discuss your situation.

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