Common Gaps in Car Insurance

Shopping for car insurance can be a doozy, we get it. Incomplete or inadequate coverage can lead to some serious consequences if you end up in an accident. As an independent insurance agency here in Omaha, Chastain Otis is here to help you figure out what your car insurance is most likely missing.

Often times, when shopping for car insurance, people look at the deductible and the payment. Granted, those may seem like the most important items at first glance. However, there are two things that can really impact your quality of life in the event of a serious accident:  Uninsured and Underinsured motorist coverage, and your limits of liability.

Ironically enough, they usually aren’t even very expensive to address.  But when you choose solely on price, you are likely purchasing inadequate coverage.

What is Uninsured and Underinsured Motorist Coverage (UM/UIM)?

UM/UIM is protection for injuries you or your passengers receive from an accident where the other driver is at fault and either does not have insurance, or does not have adequate coverage.  Insurance Research Council estimated that in 2015 6.8% of Nebraska drivers have no insurance.  Nationwide this is actually on the low end of the spectrum, with Florida leading that pack at 26.7%!   And keep in mind that Nebraska only requires $25,000 in liability coverage, per person.  If you or anyone else in your car is hospitalized, rest assured $25,000 will not be enough.

If you are involved in an accident where the “at fault” driver lacks adequate liability insurance, your own Uninsured and Underinsured motorist coverage covers you.

What is Liability Car Insurance?

Liability car insurance is kind of like the vice versa. It’s coverage to repair damages or injuries you cause to others in an accident. If you caused an accident and were sued, liability insurance would pay first—protecting your assets from being seized. It is important to note that it will only payout to the limit you set; the rest is out of pocket.

Liability limits are usually shown as a set of three numbers, such as 100/300/50. It refers to the most your insurance will pay if you cause an accident; $100,000 for injuries per person, $300,000 for injuries total per accident, and $50,000 for property damage per accident (as an example).

On top of the liability limits your auto policy has, you can also purchase excess liability coverage by taking out an Umbrella policy.   Umbrellas give additional liability coverage above and beyond your car insurance.  When considering how much liability coverage is enough, the old thinking was to have enough to cover your assets.  This should really just be the start though.   You should also consider future assets, keeping in mind that wage garnishments can be applied to settle personal injury claims.

Not sure where your auto insurance stands?

If you don’t have car insurance, or are interested in looking into your Uninsured and Underinsured Motorist coverage, as well as your liability limits, you should contact Chastain Otis today. As an independent insurance agency, Chastain Otis can help you get all the coverage you need and shop around for what fits best in your budget.