Many potential clients, although insured, are choosing minimum liability limits when they purchase their insurance. However, rather than agreeing to the same $15,000 in Underinsured / uninsured (UM/UIM) coverage, they are waiving this coverage!
In doing so they are solely relying upon the defendant’s liability coverage to compensate them for their losses.
This problem is compounded by the fact that many of our younger clients are not purchasing collision coverage on their bikes; leaving us to negotiate with the other party’s insurance carrier in order to get their bike repaired or replaced.
Example of How This Can Affect Your Claim
I recently ran into this issue with a new client who had selected $100,000 in liability coverage, which all of my regular readers know I recommend. But then he waived all of the UM/UIM coverage.
This left us at the mercy of the other insurance company to determine both the liability and damages aspect of the case.
What You Should Do to Protect Yourself
I know I have said it before, and I will keep saying it over and over again… If you are looking to save money, then lower the limits of your liability coverage and buy the same amount of UM/UIM coverage.
For example, this client in no way needed $100,000 in liability coverage.
So, the better choice would have been to lower his liability coverage to $50,000, or even $25,000, and to have also bought the same amount of UM/UIM coverage.
That way we would have been able to insure a recovery for his injuries should the other party not have been insured, or underinsured.
Now instead, we are limited to going after only the amount of coverage purchased by the defendant.
As I stated in the beginning of this column many people are buying less and less insurance coverage, most likely due to the proliferation of advertising by the insurance companies. Sadly, this limits our ability as Pennsylvania motorcycle accident attorneys to get satisfactory results for our clients; and leaves us explaining to them why we are limited in the amount of money we can recover for them.
Ultimately it is much better to pay a few extra dollars for insurance you may never need, than to not have enough insurance when you need it. The increased premium is to protect yourself! Aren’t you worth it?
Have a safe and enjoyable summer!