A Quick Look at Insurance Compensation for Autombile Accidents

In Virginia, it is not illegal to drive without insurance. Many drivers do not have insurance or do not have enough insurance. You want to make sure your car insurance policy limits are as high as you can afford.  The truth of the matter is that increasing the amount of your coverage does not significantly increase your premiums. Many people in Virginia are seriously injured by car crashes and end up losing significant amounts of money because the driver at fault did not carry enough insurance. The only way to be sure that there is enough overall insurance to protect you and your family is to have adequate insurance on your own vehicle.  Most drivers have the minimum amount required, which is $25,000.00 in Virginia.  The medical costs associated with a car accident injury can quickly exceed that amount.

The following three examples help demonstrate the need to have high uninsured and under-insured motorist coverage.  Adding this coverage can help you and your family if you ever suffer personal injury from a car accident. In each example it is assumed that you were injured in an auto accident and the Defendant is at fault for the accident.  It is also assumed that you had substantial injuries and extensive medical bills with a resulting case value of $300,000.

 

Example 1: The Defendant has a $25,000 policy.
                   You have a $25,000 policy.

                   The Defendant’s insurance company would be responsible for $25,000
                   Your insurance company would be responsible for $0.
  
Even though you were entitled to $300,000 you would only recover $25,000 from insurance, leaving you owing medical bills.


Example 2: The Defendant has a $25,000 policy.
                   You have a $50,000 policy.

                   The Defendant’s insurance company would be responsible for $25,000
                   Your insurance company would be responsible for $25,000.
  
Even though you were entitled $300,000, you would only recover $50,000 from insurance before paying medical bills and other expenses.


Example 3: The Defendant has a $25,000 policy.
                   You have a $300,000 policy.
  
                   The Defendant’s insurance company would be responsible for $25,000.
                   Your insurance company would be responsible for $275,000.
  
You would recover the full $300,000. 
  
These examples demonstrate why you must protect yourself by carrying enough automobile insurance coverage.  These examples only speak to the insurance available and do not include payments that could possible be owed to you by the individual driver. The chance that this coverage will be needed is slim, but if you ever do need it, it is well worth the small increase in your premium.  If you have any questions regarding your coverage, please email us or call our Charlottesville office at 434-688-0899.

 


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