How much auto insurance you should be? The answer is simple: more than you can afford. The primary reason for the purchase of motor vehicle insurance, including liability and insurance for motorists (UM) coverage to protect you and your assets. Your insurance company will not pay more compensation to you or your negligent harm people more than the amount of coverage, you pay for, no matter how high the decision may be to you or you. Sound complicated? Let us look at two hypothetical examples and the underlying liability coverage.

Liability Insurance

If you pay the policy premium of $ 25,000 / 50,000 auto liability insurance [1], it is possible, if you cause injury due to negligence of another person in a car accident and injured people sue you. Heavy casualties and losses, the jury may award the injured 75,000 dollars (assuming the figure). The basis of these facts, your insurance company will pay the plaintiff's injuries, only 25 000 U.S. dollars to their name, the amount of coverage you buy [2]. Therefore, you may be held liable to pay the remaining 50 000 U.S. dollars it! This is a bad result, I am sure you will agree.

What will happen, if you bought a larger 100,000 U.S. dollars / 300,000 dollar policy? Your insurance company will pay the injured person is usually the amount of 75,000 dollars of the verdict. Therefore, you will not be obliged to pay any part of it to judge. In short, the more you buy insurance, the less likely you will be required to pay any part of the legal judgments against you.

Behind the coverage (of the 64K UIM)

High insurance coverage you buy can also help you or your family members when one or more persons were injured through the fault of you, another driving force. This may occur if you and / or relatives living with you who was seriously injured in a car accident, and whose negligence caused the accident driving less insurance than you.

How does it work? As an example, say, a driver's negligence to buy the 25,000 dollars / 50,000 U.S. dollars of auto liability insurance policy, you have a policy to provide 100,000 U.S. dollars / 30 million in UM coverage. Your injuries are serious. Your medical expenses and wage losses are enormous. In the prosecution of your driving in a negligent manner, the jury awarded you 100,000 U.S. dollars in damages. The defendant driver's insurance will pay you 25,000 U.S. dollars, only the maximum amount of liability, the defendant paid to buy one for an accident. However, you can look at your own UM coverage, see if there is behind the coverage (of the 64K UIM) provided to you. In view of these facts, your insurance company will pay you 75 to 000 U.S. dollars behind the coverage.

How do you figure to reach 75,000 dollars? Occurred in this way. In accordance with Virginia law, if you have UM coverage is greater than the amount provided by the defendant's responsibility, you will be behind the coverage. If not, there will not be back for you [3]. Behind the coverage provided depends on the comparison of the defendant's responsibility for a specific scope and UM policy or policies to provide coverage for you. As the above example, your own insurance company will pay 75,000 U.S. dollars to you, because this is one of the driving amount of UM coverage of their own beyond the scope of the defendant's responsibility for the 25,000. 75,000 U.S. dollars to your coverage of the back to limit the liability of the defendant's 25,000 dollars, 100,000 U.S. dollars of the verdict of you will be paid in full.

However, there will be different results, if a policy is introduced, not only to provide you with $ 25,000 / 50,000 UM coverage. According to the facts described, your insurance carrier will pay to you, because you do not have UM insurance of $ 25,000 / 50,000 dollars less than the defendant's own $ 25,000 / 50,000 liability limit. Yes, you can personal pursuit of the accused driver program by collecting post-trial. However, the average defendant, a small number of assets and the collection of judgments may be a long-term, expensive and often futile efforts. Finally, it is always better to complete high debt / UM insurance limit ourselves, and to ensure that you and your family are protected in the event of one or more of you to maintain the serious injury caused by negligent driving of motor vehicle insurance low coverage limit [4].

Footnote 

One Limits for auto insurance 25,000 / 50,000 U.S. dollars of the minimum amount of liability and insurance coverage of motor vehicle drivers can be purchased in Virginia. Each country to decide their own minimum limits for auto insurance, so, at least, vary from country to country to do the relevant laws and motor vehicle insurance. This article is based on the fact that Virginia law. If you live in another country, you will want to know the application of the law of insurance in their own country.

Two. When you see this figure as 25,000 dollars / 50,000 U.S. dollars of the vehicle policy, which means that the restriction is "split", that is, an injured person can recover a maximum of 25 000 U.S. dollars, in accordance with this policy, while 50 000 U.S. dollars is the most insurance companies will pay to all injured persons, irrespective of the number of people were injured in the same accident or how serious they may be injured.

Three. In Virginia, you may be eligible for coverage under the automobile undersinsured more than one policy, these policies are sometimes the "stack" give you more coverage. Virginia Code § 38.2-2206. This is a complex area of law, it is wise to consult a lawyer to see if they are behind in your situation.

Four. In Virginia, you can not buy more than the amount of UM coverage on your auto liability insurance limits.