Buying Auto Insurance (part 4 of 4)

Continued from part 3.$10,000 property damage liability.
Think About it: You Need to Buy Insurance toStateRequired coverage typesUninsured
Protect Yourself, Passengers, and FamilyUnder-insured Motorist Coverage
Members by Purchasing Underinsured MotoristRequired?Minimum liability limitsNo fault?
Coverage (part 4 of 4)Alabamabodily injury and property damage
One serious mistake is to decline UIM coverage.liabilityNo20/40/10no
Some companies require that you purchase UIM inAlaskabodily injury and property damage
the same amounts as the liability insurance.liabilityNo50/100/25no
However, many companies, depending upon stateArizonabodily injury and property damage
law, are authorized to sell denominations of UIMliabilityNo15/30/10no
coverage less than the liability limits. The insuredArkansasbodily injury and property damage
thinks that he is providing some satisfactoryliabilityNo25/50/25no
minimal coverage for his family and decides toCaliforniabodily injury and property damage
save some money with lower UIM limits.liabilityNo15/30/5no
However, UIM is probably the most importantColoradobodily injury and property damage
place to spend money.liabilityNo25/50/15yes
You are not as likely to cause an accident, as youConnecticutbodily injury and property damage
are to be a victim of an accident. At least if youliability, uninsured motoristYes20/40/10no
are taking the time to read this article, you areDelawarebodily injury and property damage
probably a person who will exercise more careliability, personal injury protectionNo15/30/10no
and judgment in your driving than the ordinaryDCbodily injury and property damage liability,
person. Therefore, it is more likely that you will beuninsured motoristYes25/50/10yes
making a claim against another person for injuriesFlorida
sustained by you at the hand of the third partyBI liability not required, only property damage
tortfeasor. In this instance, the tortfeasor mayliability, personal injury protectionNo10/20/10yes
(but likely will not) have sufficient insurance toGeorgiabodily injury and property damage
cover you and your passengers for all of yourliabilityNo25/50/25no
medical expenses, wages loss, and generalHawaiibodily injury and property damage liability,
damages. If not, then the tortfeasor is said to bepersonal injury protectionNo20/40/10yes
"underinsured". In that instance, the balance of theIdahobodily injury and property damage
value of your claim, above the bodily injury policyliabilityNo25/50/15no
limits of the tortfeasor, is the responsibility ofIllinoisbodily injury and property damage liability,
your own company's UIM coverage.uninsured motoristYes20/40/15no
A third possibility is if the tortfeasor is uninsured.Indianabodily injury and property damage
This is a distinct likelihood if someone who isliabilityNo25/50/10no
reckless, or who has a drinking problem or who isIowabodily injury and property damage
driving with a suspended license involves you inliabilityNo20/40/15no
their traffic habits. They caused you and yourKansasbodily injury and property damage liability,
passengers harm, but they have no insurance.personal injury protectionYes25/50/10yes
You will be making your entire claim under yourKentuckybodily injury and property damage
UIM polity limits.liability, personal injury protectionNo25/50/10yes
All too often, we have seen serious injuries toLouisianabodily injury and property damage
individuals and their families receive little or partialliabilityNo10/20/10no
compensation because the insured elected toMainebodily injury and property damage liability,
"save money" by not purchasing the maximumuninsured motoristYes50/100/25no
UIM coverage available to him. Purchase as muchMarylandbodily injury and property damage liability,
UIM coverage as you can.uninsured and underinsured motoristYes20/40
Be Honest15no
A word of caution in dealing with your insuranceMassachusettsbodily injury and property damage
company: don't try to fool them on any of theliability, personal injury protection, uninsured
information requested, or by insuring only onemotoristYes20/40/5yes
driver for each of the family vehicles. We haveMichiganbodily injury and property damage liability,
numerous cases holding that one family memberpersonal injury protectionNo20/40/10yes
is not covered because he or she was not namedMinnesotabodily injury and property damage
as a driver of another family vehicle. Questions ofliability, personal injury protection, uninsured and
whether the vehicle was "available for the regularunderinsured motoristYes30/60/10yes
use" of any individual are complex issues, andMississippibodily injury and property damage
history tells that you will lose. Disclose the fullliabilityNo10/20/5no
number of drivers and you will have theMissouribodily injury and property damage liability,
knowledge that you and family members areuninsured motoristYes25/50/10no
covered.Montanabodily injury and property damage
The same thing pertains to marital status andliabilityNo25/50/10no
student status of children. Our recommendation isNebraskabodily injury and property damage
to be honest in your application and in yourliability, uninsured and underinsured motoristNo25
relationship with your company. The few dollars50/25no
you "save" otherwise will never be a bargainNevadabodily injury and property damage
should you loose out in the long run. A contractliabilityNo15/30/10no
entered into with materially fraudulentNew Hampshire
representations can be voidable by the companyInsurance not required; proof of financial
under some circumstances.responsibility, medical payments, uninsured
Table of Insurance Coverage Requirements, bymotoristYes25/50/25no
StateNew Jerseybodily injury and property damage
Most states require that you have liabilityliability, personal injury protection, uninsured
insurance. This covers you when you're at fault inmotoristNo15/30/5yes
an accident. If you live in New Hampshire, SouthNew Mexicobodily injury and property damage
Carolina, Tennessee or Wisconsin, you aren'tliabilityNo25/50/10no
required by law (yet) to have liability coverage.New Yorkbodily injury and property damage
For the rest of us, the mandatory coverageliability, uninsured motorist, personal injury
varies according to state. In the chart below,protectionYes25/50/10yes
minimum liability limits are read as follows (inNorth Carolinabodily injury and property damage
thousands of dollars): bodily injury liability for oneliabilityNo30/60/25no
person in an accident/bodily injury liability for allNorth Dakotabodily injury and property damage
people injured in an accident/property damageliability, personal injury protection, uninsured and
liability for one accident.underinsured motoristYes25/50/25yes
So, for Alabama, the minimum requirements areOhiobodily injury and property damage
$20,000 of bodily injury liability for one person,liabilityNo12.5/25/7.
$40,000 bodily injury liability for all people and