Auto coverage changes

Posted by Benji Riggins on February 9, 2009 under Insurance News, Office News | Be the First to Comment

New and renewal policies effective on and after 1/1/2009, are subject to a new law that requires UM, uninsured motorist, coverage for policies with 30/60 BI, bodily injury, limits and combined UM/UIM, uninsured/underinsured motorist, coverage if the insured purchases BI limits in excess of 30/60BI. 

Basically this means the state is mandating insureds include uninsured or un/underinsured motorist protection on their auto insurance policies based on the amount of liability coverage they are insured for.

The uninsured motorist coverage provides protection for your injuries in an accident if someone hits you and doesn’t have insurance.  It also includes an amount for the damage to your vehicle subject to a $100.00 deductible. 

The un/underinsured motorist coverage includes the uninsured coverage but also provides coverage for your injuries if the at fault party has insurance but lower limits than you have on your coverage and your damages are in excess of the amounts their policy provides for.

With the current state of the economy, this is definately a good idea since more drivers on the road are without coverage due to their inability/desire to pay for coverage.

If you have any questions about this important and now required coverage, please contact Statewide Insurance.

Benji