Uninsured Underinsured Motorists
by Ed Sneneh, Chicago Insurance Agent; Insurance Navy, 4717 N Pulaski Road, Chicago IL 60630
Financial consultants are not in agreement with insurance marketers about the stress that needs to be set on limits of liability in motor vehicle insurance. Marketers like to emphasize the aspects of price and insurance company rating, while financial advisors like to stress the value of liability limits firstly, then company rating in the 2nd place, and potentially price at a final step.
In spite of the fact that financial advisors and car insurance marketers have the same purpose of making the most of their earnings while making their services, the scope of their business is not the same. Auto insurance marketers make their net income by selling as many car insurance polices as they can. The marketer does her/ his greatest efforts to make as many sales as it could be, hence making small amount of money on too many policies sold. Financial consultants work differently as they seek to make a lot of commission from each of the few number of customers they have. Promoting an automobile policy is not the main priority of a financial planner, but for him or her automobile insurance is one of the elementary subjects of the financial consulting technique.
Car insurance representatives look at car insurance as a method to deliver protection should you incur a loss to the motor vehicle itself such as theft, fire or another loss; besides the fact that insurance is the law. Financial planners look at auto insurance as an integral part of their clients risk management process. To the financial advisors an motor vehicle policy is not to fix the auto in the event of loss, but is mainly about protecting the assets and resources of the insured, principally against possible suing.
A few auto insurance marketers would even endorse to lower liability insurance to state limits as a procedure to save money. No reasonable financial planner will ever make such a recommendation. No way!
When do car sr22 liability limits matter?
How high your liability limits need to be? This is the main challenge that should stay on the top of list of your review requirements when you buy car insurance. You, maybe, need only the minimum liability limits needed by the state if /when(1) you shopped for higher limits and could not afford it, (2) your current assets or wealth is not big enough to expose you to further prosecutions in the event of at fault auto accident. (3) you are a high risk operator where no other insurance wants to approve a policy for you except at the state's minimum limits. But, if you have certain amounts of financial assets and wealth, or is thought to have sizable assets or wealth in the future, then you need to worry about the extent of your liability coverage.
What about if you are not wealthy? Even for people with little or no income, the height of liability limits should be much of a to them. This is due to the fact that liability insurance accommodates certain coverages to pay for your bodily injuries in the occasion that you get hit by a automobile that is legally uninsured, or is insured but the insurance on that auto was not enough to cover your bodily injuries. According to the Insurance Research Council, approximately 15% to 17% all drivers in the United States are uninsured. Coverages for Uninsured Motorist (UM) and Underinsured Motorist (UIM) fluctuate from state to state in reference to their mandatory status and limit minimum required amounts. In Illinois Uninsured Motorists insurance is mandatory at the minimum amounts of $20,000 for bodily injury per person and $40,000 for bodily injury per accident. Underinsured motorists coverage is not mandatory in Illinois but insurance providers must supply it to clients for auto policies issued with liability over the state mandated limits.
Buyers can still decline to have higher uninsured/ underinsured motorists but it must be in writing. In actual fact, your liability only car insurance policy provides coverage for your bodily injuries as well, and making sure that you have high limits on both liability, UM and UIM can have tremendous effect on your existence.