Insurance Policy Guidelines  

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Med pay is medical coverage through your car insurance policy. It protects you and your passengers if you are in car crash no matter who is at fault. If you dont have health insurance, it is crucial to get a high dollar med pay policy, preferably a $100,000 policy. Not all insurance companies write $100,000 med pay policies, so you need to shop around. Even if you do have health insurance, med pay is important because it fills in health insurance coverage gaps. For example, if you have a deductible or co-insurance, med pay can be used to pay for those. Additionally, many health insurance policies are very weak on the rehabilitation benefits they provide. Med pay can be used to pay for the care that your health insurance doesnt cover. We recommend that even if you have health insurance, you purchase med pay in the amount of at least $25,000.

Liability coverage pays for an injured persons damages if you are at fault in a car crash. Your liability limits must be high enough to pay the injured persons medical bills, wage loss, and other non-economic losses such as decreased quality of life. If your liability limits are insufficient to cover those damages, you risk personal exposure of your assets. Increasing your liability limits is typically very inexpensive and allows you to avoid personal exposure for mistakes you may make on the road.

Uninsured/underinsured motorist coverage (UM/UIM) protects you if you are hurt in a car crash that wasnt your fault, and the driver who was at fault either didnt have insurance or didnt have enough insurance. Mandatory minimum liability limits vary from state to state, but typically they are only in the range of $10,000 to $25,000. If you are injured in a car crash that wasnt your fault, UM/UIM coverage makes up the difference between your damages and the at fault drivers often inadequate insurance coverage. UM/UIM coverage is quite inexpensive and well worth the minimal investment. We recommend that you purchase at least $500,000 in UM/UIM coverage.

An umbrella policy provides additional liability and UM/UIM coverage. However, you need to make sure that your insurance company has included UM/UIM coverage in your umbrella policy because not all insurance companies do. If your company does not include UM/UIM coverage in your umbrella, we recommend that you switch carriers to ensure that this very reasonable, and important coverage is included in your policy.

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