Do I Have Enough Car Insurance?

July 30, 2014 Auto Accidents, Insurance

Making a decision about car insurance can be very confusing at times.  There are many companies who are competing for your business, and with all of the offers for different policy coverage and all of the different options, it can be difficult to decide what the best balance is between price and adequate coverage.  Here are some guidelines that can help you follow the law and also protect yourself in the event of a car accident.

Get Insured!

Having car insurance is extremely important for multiple reasons.  First of all, the law in Nebraska requires that you have insurance in order to operate your motor vehicle.  Second, insurance protects you.  It protects you if you are struck by someone else and it also protects you financially if you have an accident.  If you are uninsured, the other motorist can sue you personally, resulting in a court judgment for monetary damages that you will have to pay.

Get Appropriate Policy Limits

In the world of auto accident law, we deal with policy limits every day.  Policy limits are the amount that your insurance company will pay out in the event of an accident that you cause.  These limits are usually abbreviated as “25/50” or “50/100” to name a couple of examples.  What these numbers stand for are the policy limits per individual and per incident.  This means that if you have 50/100 and you have a single vehicle accident and injure two individuals, the policy limits are $50,000.00 for each of the individuals in the accident and $100,000.00 for the entire incident.  If you injure three people in the same accident, the three will have to share the $100,000.00 policy limit among the three of them.  In the State of Nebraska, all motorists are required to have at least 25/50 coverage as well as $25,000 in property damage coverage and 25/50 coverage for uninsured and underinsured motorists.

Ask about Un/Under (UI/UIM) Insurance Coverage Under Your Plan.

As mentioned above, all drivers are also required to have at least 25/50 in un/underinsured coverage.  What this means is that if you are struck by a driver with, for example, 25/50 insurance, but your injuries and damages total more than $25,000, your insurance company will kick in with your underinsurance coverage because the other driver did not have enough insurance.  Similarly, if you are struck by a motorist who is uninsured, your insurance will compensate you through your uninsured motorist coverage.  This coverage is crucial to ask about and make an informed decision about, because it is the one aspect of a potential personal injury case that you can control.

As Omaha car accident lawyers, we genuinely hope that you never experience the pain and trauma of a car accident and the stress that comes afterward.  However, if you do, following these simple guidelines will ensure that you are protected financially, both from being personally liable if you cause an accident and from being left with the remainder of the costs if you are struck by a driver with inadequate insurance.