Everyone is required to purchase car insurance, but very few actually know what to buy. Some insurance agents are nice and explain each part of your policy to you. However, if you buy your insurance online or have a terrible agent you may not know what you need or why you need it. With that in mind let's review so you can make your own decision.
Liability Coverage
Liability coverage is the minimum coverage required. This coverage will cover you for damage to another person's vehicle and person, but it will not cover the damage to your car. This coverage could leave you liable for any serious injuries you cause to another individual while driving your vehicle. Having insurance does not mean an individual can't come after you personally if their damages exceeds your policy limits.
The best way to guard against this is to purchase higher liability coverage on your policy. The minimum for a policy in Kentucky is $25,000 per person and $50,000 for an entire wreck. If you increase your coverage it will probably be a few more dollars a month, but it will cover you if you are in a severe wreck.
I recommend folks get $100,000 per person and $300,000 per wreck in coverage for liability.
UM Coverage
Kentucky law requires uninsured motorist coverage, but you need to make sure your insurance policy covers your family in case the worst case scenario strikes. Although everyone is required to have motor vehicle insurance many do not - you need to protect yourself against these people. This coverage protects you against an uninsured driver. If an uninsured person hits you and you do not have UM coverage then it will be unlikely you will have recourse for your medical bills, injuries, or lost wages. This type of coverage can be added to your policy for a few dollars a month, but will potentially save you severe stress.
I recommend folks have $100,000 per person and $300,000 per wreck in coverage for uninsured motorist.
UIM Coverage
UIM coverage means Underinsured Motorist Coverage. UIM covers when an individual driving a car with limited liability coverage strikes you, but your medical bills, lost wages, and injuries exceeds their policy limits. Once you reach the policy limits of the individual who hit you, you may recover from your insurance if you have UIM coverage. Kentucky only requires $25,000 liability coverage, therefore UIM coverage is a good addition to any coverage in case you are in a catastrophic wreck, or even a minor one when you consider the increased cost of medicine.
I recommend folks have $100,000 per person and $300,000 per wreck in coverage for underinsured motorist.
Collision Coverage
This coverage allows you to recover the damage to your vehicle in an accident whether you are at fault or not. If you are not at fault, then your car damage will be covered by the at-fault party's insurance, but if it's a 50-50 claim where neither insurance company accepts liability you may be without a car for a very long time if you are without collision coverage.
Full Coverage
Full coverage includes all the coverages listed above. However, you should always check the coverage for any full coverage policy. Some insurance companies will charge you a higher premium, but with lower limits than if you bought each coverage separately. Ask your agent today to make sure your insurance company is not slighting you.
Don't be fooled by your insurance company, make sure you are protected and ask about the above coverages.
Author: Justin May, Esq.
Justin May is a founding partner and owner of the Dixie Law Group, PSC. Justin was ranked as a top 10 personal injury attorney under 40 in Kentucky in 2016. Justin focuses his practice on all types of PI cases, but specifically on car accidents.
If, you, a loved one, or a friend was recently in a car wreck call the Dixie Law Group today!
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