Reviewing Your Insurance Coverage
As we head into a new year, it’s a great time for drivers to take a closer look at their car insurance policy. Many people don’t fully understand what their policy covers, or what it doesn’t cover, until after an accident happens. Recently David Greene joined Studio 10 to talk about why reviewing your coverage is so important and what people should be looking for.
Why is the start of the year a good time for people to review their auto insurance policies?
This is when a lot of policies renew automatically, and people may not even notice changes in their coverage or premiums. Reviewing your policy now ensures that you have the right protection before an accident happens. Once a wreck occurs, it’s too late to increase your coverage. Taking a few minutes in January can prevent major financial headaches later in the year.
What types of coverage should people pay special attention to?
One of the most important is uninsured and underinsured motorist coverage, or UM and UIM. Alabama has one of the highest rates of uninsured drivers in the country, and many people only carry the minimum required coverage. If someone hits you and doesn’t have enough insurance to cover your injuries, UM and UIM can protect you. We recommend matching your UM limits to your liability limits so you’re fully covered.
What about liability limits? Are the state minimums enough?
In most cases, no. Alabama only requires $25,000 in liability coverage, and a single emergency room visit can exceed that. If you cause an accident and have low limits, you could be personally responsible for anything the insurance doesn’t cover. Increasing your liability limits is often surprisingly affordable and gives you much better protection.
Do people ever discover they’re underinsured only after an accident happens?
Unfortunately, all the time. People are shocked to learn that their policy doesn’t cover rental cars, or that their UM coverage is too low, or that their deductible is higher than they realized. Taking 10 minutes now to review your policy, or talk to your agent, can prevent that surprise. The goal is to protect yourself before something goes wrong.
If someone wants help understanding their coverage after an accident, how can they reach you?
They can stop by our office at 51 North Florida Street, no appointment needed. Or they can call or text us at 251-478-1115, or fill out a contact form. And if they can’t make it to us, we’ll come to them.
