I can’t tell you how many times friends, family and clients ask me what type of coverage is best for them. As with most things in life, the answer is “It depends.” However, there are certain basic coverages that everyone should have to adequately protect themselves regardless of who may be at fault for a claim. With auto coverage, I recommend to everyone that they purchase no less than $5,000 in medical payments coverage. This is no-fault coverage which means that even if you are the cause of an accident, your medical payments will kick in and help pay for bills. Even if you have the best health insurance, med pay coverage is well worth the very small premium. One use of it can literally pay for coverage for many years.

Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverage is where most people miss out. I have represented well over 200 clients whereby injuries and bills were massive, but the liability policy of the at fault person was woefully insufficient to cover the claim, or there was no policy at all. Without UM and UIM, you are potentially exposed to high medical bills, lost wages, and more with no chance at recovery from the at fault party. I usually recommend at least $100k in coverage for each. The coverage cannot exceed more than your liability limits . . . which leads me to my final point.

In order to protect your assets and to gain the benefit of heightened UM and UIM coverage, at least $100k in liability coverage is recommended. Of course, if you have significant assets to protect, much higher amounts of liability coverage should be purchased along with umbrella coverage usually available through a homeowner’s policy.

Every situation is unique and should be discussed with an insurance professional. However, I am more than happy to discuss with anyone what coverages mean in the “real world” and legal context. I will always do this as a courtesy, so I welcome you to email or call me at any time.