Welcome to the March Edition of the Bisnar Chase Ezine
This month's topic is uninsured and underinsured drivers.
The economy's downward spiral has affected Californians in many ways -families can no longer afford every convenience they once expected. In fact, as unemployment rates continue to rise, it's becoming more difficult for many to get by. Because of this, people are cutting back in all areas of their life - cheaper food, more affordable clothing, fewer entertainment expenses, less transportation, and cancelled auto insurance.
That's right; thousands of Californians are cutting back on their auto insurance so they can stay afloat- a decision that is costing others dearly. I'm going to show you four important ways to protect yourself against an uninsured or underinsured driver so you can be fully compensated in case of a collision.
Remember, your safety on the roads always begins with you.
Wishing you the best,
-John Bisnar
In this issue:
- Meet Marta De La Torra
- Personal Injury Tip
- Insurance Case
- News Story
- Lawyer Joke - Don't Know
Personal Injury Tip
Throughout the current economic recession, Californians have found themselves facing countless critical financial decisions - and thousands of local cash-strapped motorists have dropped their car insurance so they can continue paying for rent, groceries, and other basic needs.
In 2007 it was estimated that 18% of all drivers in California were uninsured - and the number is expected to rise significantly in the near future, possibly doubling by 2010.
Unfortunately, this growing issue creates enormous financial risks to everybody on the road. If you are hit by an uninsured driver, you will not receive the compensation you deserve unless you have extended coverage.
And if you are an uninsured driver, you risk losing whatever assets you currently own while also facing potential criminal charges, as driving uninsured is illegal in California.
Here are four tips for protecting yourself, your vehicle, and your passengers while driving in California:
- Make Sure You Are Insured: If you can't afford to insure your car, you shouldn't be driving. There are many alternative means of transportation and there is simply no excuse for driving without coverage. Not only do you put you, your passengers, and your car at risk - but you are also a hazard for other drivers.
- Get UM/UIM Coverage: Uninsured and Underinsured Motorist coverage (UM/UIM) is an important add on. If you're injured by a driver who is uninsured or underinsured, then they will be liable for the damages, but it could take years to collect. With UM/UIM, you'll have no such problems. Your standard car insurance protects you and others in case you are at fault, but UM/UIM protects you even if an uninsured or underinsured motorist is to blame.
- Gaise Your Limits: When purchasing auto insurance, you should make sure you are covered for every scenario. I'd recommend an absolute minimum of $100,000 per person and $300,000 per accident for bodily injury - with the same limits for UM/UIM - and up to $100,000 per accident for property damage. It's not expensive to increase your coverage, and it will provide you with phenomenal relief if you were ever involved in a serious accident.
- Report Your Accident Right Away: Lastly, if an accident ever occurs, you need to make sure you handle it in the proper manner. By calling law enforcement right away and by filing a police report - including the details of each automobile and individual involved - you will have a much easier time dealing with your insurance company.
While defensive driving can reduce your risk of an auto accident in California, your safety is never guaranteed. Although premium car insurance may seem like it is expensive when looking at your month-to-month budget, it is an extremely small price to pay for peace-of-mind. And with thousands of uninsured and underinsured drivers filling the roads throughout the day, you can't play it too safe.
Insurance Case
In 2002, one of our clients was driving down Yorba Linda Boulevard when a vehicle pulled out of a shopping center parking lot and took a left turn in front of his car, causing a collision involving extensive damage. The person who caused the accident was driving a work vehicle that was underinsured.
We settled the underlying case against the defendant before making an additional claim against the employer's UIM policy. The total case settlement reached $750,000.
News Story
According to the latest report from Insurance Research Council (IRC), there is a strong correlation between the percentage of uninsured motorists and the unemployment rate - a 1% increase in the unemployment rate results in an increase of over 0.75% in the uninsured motorist rate.
"An increase in the number of uninsured motorists is an unfortunate consequence of the economic downturn and illustrates how virtually everyone is affected by recent economic developments," explained Elizabeth A. Sprinkel, senior vice president of the IRC. "Responsible drivers who purchase insurance end up paying for injuries caused by uninsured drivers."
While the uninsured motorists problem is evident nationwide, the range varies from state to state.
[via IRCweb.org]
Lawyer Joke - Don't Know
A policeman arrives at the scene of an accident, in which a car smashed into a tree.
The cop rushes over to the vehicle and asks the driver, Vickie, "Are you seriously hurt?"
"How do I know?" Vickie responds. "I'm not a lawyer!"
Personal Injury
SLS Consulting
