Insurance Coverage Video Featuring Attorney Michael Krutman
When you purchase auto insurance it’s important that you communicate with your insurance agent and make sure that they explain all your options to you. The two most important ones are whether you have the limitation on lawsuit threshold or the no threshold.
If you opt for the limitation on lawsuit threshold you pay less of a premium but if you’re injured in an accident which is not your fault, you not only have to prove that you were injured in the accident but that that injury rises to the level of being a permanent injury. And it’s very important to know that you still can sue but you have more of a burden to recover.
If you opt for the no threshold you pay more of a premium and it varies from company to company but all we have to prove is that you were injured in an accident, you don’t necessarily have to have a permanent injury.
Unfortunately some people who have the limitation on lawsuit threshold may have a permanent injury but because they have it juries may decide that they don’t meet the threshold and you can recover nothing for an injury.
So it is usually worth paying the extra money for it to have the no threshold.
The other thing is the underinsured motorist benefits. Uninsured motorist benefits are extremely important because if you’re injured in an accident with another driver who is underinsured or has a small policy, you then have the right to go after your own insurance for additional coverage if you have high underinsured motorist benefits. And your rates will not go up if you bring an underinsured motorist claim.
So what I typically recommend to clients is that they have no less than $100,000 in underinsured motorist claims and they ask their agent how much more it would be for, in premium, to have 300,000 or even 500,000 or 1,000,000 in underinsured motorist benefits because typically the difference in price is less than $100. Thank you.