You Need Insurance

[In Honor of Groundhog Day and one of it’s most memorable characters, we are re-posting this Information–Originally published August 26, 2016–and with apologies to Stephen Tobolowsky…and everyone else, here we go…]

I know, I know.  First of all, no one likes to be sold to.  Second, everyone is skeptical about insurance salesmen (remember “Needlenose” Ned Ryerson?).  Lastly, who wants to get insurance sold to them by an injury lawyer? Amirite?  Oramirite?  Right?  Right?

But, please hear me out.  This advice comes from a good place and is the kind of shrewd, prudent advice that your sweet and thoughtful grandmother would have given you.  It’s simply the smart thing to do.  The reality is that owning a vehicle is expensive.  Maybe you reached a little bit and got the bigger engine or the souped-up luxury package on that first or second nice car that you bought in life.  Maybe you couldn’t help needing a second family car that would fit all the kids, groceries, sports equipment, and cleaning supplies that go along with having a young family.  Whatever it is, the last thing you need on top of a car payment and paying for maintenance and gas is expensive insurance.

But here’s the thing: the kind of insurance I’m talking about is not that expensive.  Take a look at your insurance policy (or if you don’t have it handy, just follow my lead).  In the package you get from them every 6-months, you’ll see a “Declarations” page.  It’s simple.  It’s 2-3 pages long.  It might be difficult to interpret.  But it has a lot of numbers on it.  Those numbers should break down the categories of insurance that you have on the vehicle(s), how much coverage you have for each type of loss, and the amount each category costs you per pay period.  You’ll notice that the largest expense is probably for “Collision” coverage–for the damage to your vehicle.  This is a relatively-large proportion of the insurance because: a) cars are expensive; and b) cars are the most likely thing to be damaged in a collision.  People do not always get hurt.

But when people do get hurt, the next important number is “Bodily Injury” coverage.  Liability insurance will cover the damage to the other car’s vehicle if the collision is your fault.  Bodily Injury coverage covers physical injuries to another person.

Why You Need Insurance

You need insurance for the simple reason that, if the crash is your fault, you might have claims or lawsuits made against you.  Insurance means the company will defend you and pay for the losses.  But there’s another way insurance protects you that you might not know about: Uninsured & Underinsured Motorist Injury coverage.  This is something people rarely think about: what if the other guy doesn’t have insurance???  It’s an important question.  According to national Insurance estimates, 13% or 1 in 8 drivers on Illinois roads do not carry insurance.

But, isn’t that illegal?  Yes.  Read the article.  It’s insightful, examining the dilemma posed by uninsured drivers as well as the phenomenon that so many on the road willingly break the law, expose themselves to liability, and risk that injuries to others might go uncompensated.  But, you can protect yourself.  Look back at that Declarations page.  There are coverages for “under-” and “uninsured” collisions.  This means that if you are injured by someone without insurance, you can make a claim with your own insurer for your injuries.  And the coverages are relatively affordable: maybe $20-$50 per 6 months (depending on the limits…Hint: get as much as you can afford).  The idea is that you never know how serious the injuries might be.  The last thing you want is not to have options in case the driver who hits you isn’t insured.  And you also do not want artificially-low limits to get in the way of a full and fair recovery.

The reality is that the difference between $50,000 and $500,000 in Under- and Uninsured coverage is probably $50 per year (depending on the company, accident history, etc.)

BOTTOM LINE

Get the insurance you can afford.  Do not risk tickets and financial liability.  Do not risk financial hardship by being injured by someone lacking insurance.  Ned the Head might have been a life insurance salesman and not an auto insurance salesman, but even he would have appreciated that taking risk into your own hands is just prudent advice.  So would your shrewd grandmother.  If you have more questions about injuries, insurance, and coverage, please give our attorneys a call and we will be happy to talk further.

I know, I know.  First of all, no one likes to be sold to.  Second, everyone is skeptical about insurance salesmen (remember “Needlenose” Ned Ryerson?).  Lastly, who wants to get insurance sold to them by an injury lawyer? Amirite?  Oramirite?  Right?  Right?

But, please hear me out.  This advice comes from a good place and is the kind of shrewd, prudent advice that your sweet and thoughtful grandmother would have given you.  It’s simply the smart thing to do.  The reality is that owning a vehicle is expensive.  Maybe you reached a little bit and got the bigger engine or the souped-up luxury package on that first or second nice car that you bought in life.  Maybe you couldn’t help needing a second family car that would fit all the kids, groceries, sports equipment, and cleaning supplies that go along with having a young family.  Whatever it is, the last thing you need on top of a car payment and paying for maintenance and gas is expensive insurance.

But here’s the thing: the kind of insurance I’m talking about is not that expensive.  Take a look at your insurance policy (or if you don’t have it handy, just follow my lead).  In the package you get from them every 6-months, you’ll see a “Declarations” page.  It’s simple.  It’s 2-3 pages long.  It might be difficult to interpret.  But it has a lot of numbers on it.  Those numbers should break down the categories of insurance that you have on the vehicle(s), how much coverage you have for each type of loss, and the amount each category costs you per pay period.  You’ll notice that the largest expense is probably for “Collision” coverage–for the damage to your vehicle.  This is a relatively-large proportion of the insurance because: a) cars are expensive; and b) cars are the most likely thing to be damaged in a collision.  People do not always get hurt.

But when people do get hurt, the next important number is “Bodily Injury” coverage.  Liability insurance will cover the damage to the other car’s vehicle if the collision is your fault.  Bodily Injury coverage covers physical injuries to another person.

Why You Need Insurance

You need insurance for the simple reason that, if the crash is your fault, you might have claims or lawsuits made against you.  Insurance means the company will defend you and pay for the losses.  But there’s another way insurance protects you that you might not know about: Uninsured & Underinsured Motorist Injury coverage.  This is something people rarely think about: what if the other guy doesn’t have insurance???  It’s an important question.  According to national Insurance estimates, 13% or 1 in 8 drivers on Illinois roads do not carry insurance.

But, isn’t that illegal?  Yes.  Read the article.  It’s insightful, examining the dilemma posed by uninsured drivers as well as the phenomenon that so many on the road willingly break the law, expose themselves to liability, and risk that injuries to others might go uncompensated.  But, you can protect yourself.  Look back at that Declarations page.  There are coverages for “under-” and “uninsured” collisions.  This means that if you are injured by someone without insurance, you can make a claim with your own insurer for your injuries.  And the coverages are relatively affordable: maybe $20-$50 per 6 months (depending on the limits…Hint: get as much as you can afford).  The idea is that you never know how serious the injuries might be.  The last thing you want is not to have options in case the driver who hits you isn’t insured.  And you also do not want artificially-low limits to get in the way of a full and fair recovery.

The reality is that the difference between $50,000 and $500,000 in Under- and Uninsured coverage is probably $50 per year (depending on the company, accident history, etc.)

BOTTOM LINE

Get the insurance you can afford.  Do not risk tickets and financial liability.  Do not risk financial hardship by being injured by someone lacking insurance.  Ned the Head might have been a life insurance salesman and not an auto insurance salesman, but even he would have appreciated that taking risk into your own hands is just prudent advice.  So would your shrewd grandmother.  If you have more questions about injuries, insurance, and coverage, please give our attorneys a call and we will be happy to talk further.