Auto accidents are, unfortunately, an ordinary part of our lives. They are costly, not only because of our auto insurance expenses but also because of the impact on our lives both economic and as a result of pain and inconvenience they cause.

Having practiced law in the areas involving personal injury for almost forty years I have seen the impact on my clients lives ranging from minor soft tissue (muscle, tendons and ligaments) to lifetime disabilities such as burns, brain damage, crippling fractures and nerve damage causing paraplegia and even quadriplegia. Our office has also handled many cases resulting in death which certainly impacts significantly on the lives of a family and friends of the unfortunate victim.

While some accidents can certainly be avoided by careful, attentive and defensive driving you cannot always protect yourself from the negligence of others, especially in the age of cell phones, GPS guidance systems and text messaging.

So if you do find yourself in an automobile or other moving vehicle such as motorcycle, bicycle or truck accident, shown below are the important steps you should take to protect yourself from possible legal, medical and/or financial problems that might arise from that accident:

At the scene:

a.) Contact police immediately so that a proper accident record is created that describes the events that led to the accident and the consequences of the accident. Be certain the report the accident to the police officer in a concise statement (please do not talk to much) and in a light most favorable to you. While you may be tempted to make polite apologies to another driver, they can be construed as an admission of fault, so do not do it. Even if you might be at fault, do not make any statements of fault. Let the police make there own judgment.

b.) Never tell the officer at the scene of the accident that you are not injured even if you think you feel fine. A statement that you are shaken up unsure if you are hurt will help should litigation become necessary. We are not suggesting you lie, just letting you know that most soft tissue injuries such as muscle, ligament and cartilage damage will not become apparent for 12-24 hours. A statement that you are not injured at the scene of the accident will, without doubt, be used against you in any later settlement discussions, trials and even insurance claims for medical attention should injuries later show up as a result of the accident.

Insurance Claims:

Make sure you get the name of the other driver’s or drivers’ insurance company at the time of the accident. Report the accident to your insurance company immediately giving them the date and time of the accident and the other driver(s) insurance information. DO NOT GIVE YOUR INSURANCE COMPANY ANY OTHER INFORMATION WITHOUT FIRST SPEAKING TO AN ATTORNEY. Neither the other driver(s) NOR your insurance company is looking out for your best interest. Trust me on that…your insurance company may talk of “good hands” but they are looking to pay the least amount of money on any claims you make as possible.

Repairing your vehicle: Take your vehicle to a qualified Auto Body Shop. If you have property damage coverage on your insurance policy, your own insurance company will arrange for the repairs. Your deductible or a portion of it may be paid by the other driver’s insurance company depending on the assessment of who is at fault for the accident. That is another good reason to speak to your attorney first before any further steps are taken. BE CERTAIN TO OBTAIN PHOTOS OF THE DAMAGE BEFORE REPAIR FROM THE BODY SHOP. Digital copies are best.

Medical Care:

a.) Always see your family physician within three days of the accident and if you are feeling any pain at the scene of the accident you would like to go to the hospital. If an ambulance is necessary because you are not feeling up to driving or your vehicle is not capable of being driven, ask the officer to arrange for an ambulance for you.

b.) At the emergency room and any subsequent visits always report any pain that you are feeling no matter how small you think it is at the time. The reason is that if your pain gets worse and becomes a permanent problem, it is extremely important that you are able to “connect the dots” back to the accident. Consistent reporting of areas of pain that increases and even decreases over time will establish the connection to the accident. Throughout your treatment be very careful what you say. I recently had a case in which my client was severely injured in an accident required pain surgery and was left with a severe permanent injury to his leg. After the surgery he advised his physician that he was feeling “80% better”. This was used against him at the time of trial. Report your accident truthfully but in a light most favorable to you. At the ER people tend to focus on the place in their body where they are feeling the most pain. That is not always what ends up to be the real problem so be certain to report all pain, if it is present in any place in your body as it can get a lot worse. After specific descriptions of pain, a statement to the triage nurse and or treating ER doctor to the effect that “I ache all over” (if true) can assist later in evaluating your case should new symptoms appear at a later date.

Medical Expenses:

a.) PIP coverages on your auto policy – Most drivers in New Jersey have personal injury protection coverage (PIP) on their automobile insurance policies. This coverage is considered one of the best in the nation as it provides $250,000.00 of medical coverage. In exchange for that substantial amount of coverage you are liable for a copay and deductible of $1,200.00 on the first $5,000.00 of medical expenses. That money is non refundable, however, if a doctor treats you for a substantial period of time they will sometimes be willing to reduce the copay obligations. In addition, if you have your own health insurance, you should report both policies to your physician because the copay and deductible can, in some cases, be picked up by your health coverages.

Health Insurance alternative – Some people have opted out of the PIP coverage when selecting their policy coverages, have no auto insurance or may not be eligible for PIP¹ for reasons to complex to go into here. If you have substituted your own health insurance policy as primary on your auto policy or have no auto insurance and use private health insurance or medicare/medicaid coverages you may be required to reimburse your insurance company for the money they lay out for your care related to the injuries sustained in the accident. If you settle with the other driver’s auto insurance company without this being taken into consideration you could be stuck for those bills. A knowledgeable attorney who is experienced in auto accident injury cases will know to include the amount of the bills in your settlement so you are adequately protected. This is one of the reasons that the insurance industry likes to settle before the lawyer is involved.

c.) In addition there are complex insurance issues that arise when you are injured in a state in which you do not reside. These are called conflict or choice of law issues. Our lawyers are admitted to practice in both Pennsylvania and New Jersey . In those cases where a Pennsylvania licensed and insured driver is injured in New Jersey and/or the reverse, the insurance laws can get quite complex and it is very important that you become aware of, and your attorney is familiar with, those complexities. Jerrold Kamensky and Philip Cohen teach those matters for continuing legal education courses.

Selecting your lawyer:

a.) Of course you knew that I would get to this point and I have a good deal of bias in this area. Kamensky- Cohen & Associates has been practicing personal injury and insurance law since 1972. It is not the only area of our practice and I would suggest you see our website to explore other areas that we can help you with. We have exceptional depth of experience in both New Jersey and Pennsylvania and we have taught other lawyers on the inter-relationship of automobile insurance law between the two states.

If you click on the friends and family link below you will connect to our website and you can sign up to become a member of our “friends and family”. So long as you are a member thirty days or more before you are involved in an accident you will be treated with a special rate as set forth in the friends and family section.

Once you are a member of friends and family we will assist you, without charge in reviewing your automobile insurance and provide you with advice on how to get the best protection for the least amount of money. We are here to help you.

Protecting yourself with your own automobile insurance involves a comprehensive understanding of which coverages actually protect you from the claims against you by other drivers as well as claims made by you against other drivers. It is our view that one of the primary purposes of automobile insurance protection is to protect yourself from uninsured and underinsured drivers causing injury to you. In order to optimize your coverages for these purposes, careful attention must be paid to the selection of all aspects of your coverages. The following article explains two important aspects of selecting the right coverage and how what you choose on one effects what you are allowed to choose on the other.

LIABILITY COVERAGE – pays for bodily injury and property damages that you or a driver of your automobile causes to others. It also pays for the cost of an attorney selected by the auto insurance company to defend you against claims made against you by the other, injured driver. Injury damages include medical expenses, pain and suffering and lost wages. Property damage includes damaged property and automobiles. New Jersey and Pennsylvania (like 45 other States) require minimum coverages, but you can, and should, purchase more coverage than your state requires. The following selection criteria will help assess the need for additional coverages over and above what the minimum requires.

a. Assets Available for Seizure by an Injured Person Due to Your Negligence. Because your liability selection is provided to protect you and drivers of your car from claims of others for negligence related to the use of your automobile, it is important to be aware that the limits of your liability coverage are not the limits of what the person you injured can recover against you but they are the limits of what the insurance company will pay. If, for example, you have selected and purchased a $15,000 liability limit and as a result of your negligence in the operation of your motor vehicle serious injury is caused to another, your own assets can be seized to compensate for those injuries.

Income Earning Capacity. Even if your assets are limited, other means of collection are available through garnishment of your wages and liens on Real Estate. For example; with the diminished bankruptcy protections now available, a judgment against you can be a long term threat that will have impact on your credit rating and ability to transfer jointly held property. The judgment grows daily with the addition of interest.

c. Financial Capacity to Pay for Coverages. – It is easy to see that the more liability coverages that you have, the more protection that you have. Of course, there is always the concern that increased coverage takes more money out of pocket. While this is true, it is important to know that the lower levels of coverages are, dollar for dollar, the most expensive. Why? Because, like all insurance coverage, the purchase price is tied to the cost (plus substantial profits for the insurance company and large executive bonuses ¹⁾and, obviously, there will be far more frequent minor injury claims than claims for serious crippling injuries. In addition, the insurance company is paying for the cost of your attorney, which may not vary significantly despite the difference in injuries caused so those first dollars of coverage are the most frequently paid and hence the most expensive.

(According to the America Association of Justice the CEOs of the top 10 property/casualty firms earned an average of $8.9 million in 2007.)

UNINSURED/UNDERINSURED COVERAGE – (“U” coverages) provides you with insurance coverages when you are the injured party and the other guy has insufficient liability coverage (“Underinsured”)or no insurance (“Uninsured”) to pay for the extent of your injuries and damages.

The Need/desire to Protect Yourself from Injuries That You Suffer Caused by a Negligent Drive of Another Car. When you are injured due to the negligence of another driver you should no more rely on that driver to have adequate protection for you than you would rely on him to drive safely. Defensive insurance purchasing is as important as defensive driving and both can protect you from the devastating effects of an accident by purchasing adequate Uninsured/Underinsured insurance protection. We have seen many cases where a negligent, reckless or even a drunk driver has caused serious injuries to our clients and the “bad” guy had no coverage or minimum coverages. It sounds simple – just increase the “U” coverages on your policy. The problem is that you can only increase those coverages to the maximum of the amount of Liability coverage that you have selected (see above). To determine the cost of protecting yourself you have to measure the cost of increasing both your Liability and”U” coverages. The following chart will help and is taken from actual quotes for six months of coverage which we provided for a client of ours.

The “lesser coverage” is what his policy reflected at the outset of his coverage consultation in our office. The “increased coverage” is what we recommended and he purchased after our free consultation.

2 The Threshold can limit your ability to recover against the other guy even when he is clearly in the wrong. He could have been drunk, asleep or reckless and if you have failed to select out of the default “Limitation on Lawsuit” you could be out of luck even though you have been faithfully paying for your insurance for years. If you have the “Limitation on Lawsuit” threshold on your policy (insurance companies love that!) you cannot recover for your pain and suffering unless a jury determines that your injuries meet a certain statutorily defined “threshold”. Individuals suffering from “soft tissue” injuries, even severely herniated disks causing a lifetime of pain and suffering, are currently being denied recovery in approximately 90% of jury trials in New Jersey. Watch out for this one because if you do not select out of the “Limitation on Lawsuit” you will pay a lot and get no bang for your buck!

 3 Your PIP (Personal Injury Protection) coverage is important! Insurance companies will often recommend the $15,000 coverage instead of the default coverage of $250,000. The difference is only $18/year more for a good deal more protection to pay your medical bills should you be injured. Even a modest injury can result in medical costs that will dramatically impact on your pocket book and the cap that many health policies now place on your coverage. The $250,000 coverage is considered one of the best in the nation and should be your selection.

 Check out the above footnotes in the chart because they demonstrate the manner in which you can easily be deceived into purchasing far worse coverage when the cost of the much better coverage is minimal. Many of these coverages must be offered by law but are discouraged by the insurance companies. The “Limitation on Lawsuit” threshold is the insurance company’s profit mill. Tha’s why they lobbied the legislature hard for a law that allows them to write your policy with the “limitation on lawsuit” coverage unless you elect out of it. They lull you into thinking that you will be able to sue the other driver, but based on the fact that you have failed to deselect the default coverage of a “Limitation on Lawsuit” policy, you will not be able to recover in 90% of the cases that go to the jury. Many prominent lawyers will not take cases that are subject to the “Limitation on Lawsuit”. Do not make that mistake – deselect ” Limitation on Lawsuit” and be sure that the policy reads “No Limitation On Lawsuit”.

Both of the policies that I have shown above are shown to have selected a “No Limitation” policy. Actually, when my client came to me, he had not deselected the “Limitation on Lawsuit” policy. The difference in the cost of the policy with a “No Limitation” selection would have been only $90/year additional. Had he chosen a “no limitation” policy, the injuries that he had suffered would have been recoverable without question. Without the “no limitation” selection, we were not, unfortunately, able to take his case to help him recover damages for his substantial injuries. Nothing is more frustrating for a lawyer than to see a seriously injured victim of an auto accident unable to care for himself because of uninformed selection of insurance coverage!

Prices for auto insurance will vary depending on factors such as age, gender, location, amount of driving and driving record. The differences in coverage costs for far better protection are surprisingly less than one might think. Most people rely on their insurance company/agent’s recommendations. These recommendations are not necessarily in your best interests.

As I said above, there are a wide variety of factors that influence the cost of your auto insurance purchase. For instance, if you are looking to buy a car, some cars have equipment that may bring down your auto insurance costs. Security devices and tracking devices such as “On Star” will save some money. If you think you can afford that mid life crisis red Porsche, be sure to consider the cost of the insurance when you do your budget. Cars that are on the car thief’s “favorite list” will increase your insurance costs and that cost needs to be factored into your decision.

It has become much easier to compare rates for insurance because of the access to rating

on the internet. Figure out what you want and price the coverages with several different carriers. Rates will differ. Be sure to let whichever carrier you choose know about discount factors for which you qualify. If you don’t know which discounts you may qualify for, ask! Some of the more common discount factors are good student discounts and/or multiple cars on a single policy. A good driving record will bring the costs down and a bad one can make you a high risk and expensive insured. Even reducing your annual mileage estimates by car pooling or public transportation will impact some on the rates.

The best way to evaluate the impact of your policy is to come in to Kamensky-”Cohen for a free review of your policy. We will tell you how the coverages you have selected really protect you or not should you be involved in an accident and help you evaluate your best cost/protection ratios.

Yes No Options Basic Policy (Absolutely Not) Standard Policy Liability Coverage (A minimum of $100,000 and more if you can afford the protection) Uninsured Motorist Coverage (A minimum of $100,000 and more if you can afford the protection) Underinsured Motorist Coverage (A minimum of $100,000 and more if you can afford the protection) PIP Medical Expense Benefits ($250,000) PIP Medical Expense Benefits (less than $250,000) Pre-certification of Medical Treatment No limitation on Lawsuit Option Limitation on Lawsuit OptionÂ

WARNING: The Basic Policy provides no liability coverage if someone makes a claim against you and no uninsured motorist coverage if the careless driver who caused the accident had no insurance. If you are sued you will not have any insurance to pay a judgment against you, your insurance company will not assign a lawyer to represent you and you may lose your credit rating and your driver’s license. Never Buy a Basic Policy.

This purpose of this guide is to help you, when purchasing auto insurance, to select the coverage that will best protect you and your family if you are ever involved in an auto accident. If you have any questions left unanswered by this pamphlet or would like a lawyer’s opinion about your auto insurance policy, call Kamensky – Cohen & Associates for a free consultation.

The New Law:

The new auto insurance law in New Jersey that went into effect in 1999 has made significant changes to your coverage and we have some critical consumer tips, which we believe will protect you and your family. The first and foremost of these tips is never select the “basic policy”. When it comes time to renew your auto insurance, you’ll have to choose between what government regulators have named the “basic policy” and the better levels of coverage found in a “standard policy”. The standard policy will protect you and your family. The cheaper “basic policy” is so lacking in coverage that it provides little more than an insurance card. The “basic policy” only provides limited medical coverage and trivial liability coverage. No individual or family with any assets or income from a job should buy such a policy. Without liability coverage, you can be personally sued. If successful, a judgment can dramatically affect your financial future, your credit rating and even your ability to own or drive a car!

Liability:

How much “Liability” should I be carrying?
As mentioned above, liability insurance is what protects your family and assets in the event you are charged with causing an accident. High liability protection can help assure you will not be financially stripped. If you’re a basic policyholder involved in a collision that is only partly your fault, you could lose your license, your car, your income and other assets. Even if you believe you have no assets to protect today (or that your college bound son or daughter has nothing to protect), consider this: an unpaid judgment is a 20-year judgment. The assets you may gather for the next two decades…a better salary, a better house…are subject to being taken to pay the judgment. And until that judgment is satisfied, you can’t own a car and you can’t drive, not even to your job.

Coverage:

How much should you buy?
The best answer is as much as you can afford. Ideally, no less that $100,000. It is not uncommon for juries to award in excess of the minimum coverage for serious injuries. Increasing your coverage to $500,000 or $1,000,000 can make good sense if you own if you own property, have savings, and other assets that you need to protect. The good news is that the cost of incremental increases of liability coverage is far less than you would expect. The highest premium is for the first $50,000 in coverage because most awards for accident related injuries are in that range. Get the exact costs for each level of liability coverage from your broker or insurance company and then opt for the most you can afford.

UM / UMI:

What does Uninsured Motorist (UM) & Under Insured Motorist (UIM) Cover?
This coverage is critical! UM/UIM coverage protects you when you are not the person responsible for the accident, but the person who is, either does not have auto insurance, or has the minimum or a modest auto insurance policy. Since their policy will not sufficiently cover what your damages are “worth” and they have no assets to make up the difference, your own auto insurance will make up the difference up to the amount of your UM/UIM coverage. For instance, If you have a $100,000 UIM/UM coverage on your auto policy and are hit by someone whose has the new “basic policy” or no insurance at all, he/she will quite likely have no liability insurance whatsoever. If your damages due to injuries and economic losses add up to $100,000, and the “other guy” has no liability insurance and no assets, your own UM/UIM coverage will cover your $100,000 in losses.

How much to buy:

How much should you buy?
By law your UM/UIM coverage cannot be higher than your liability coverage, but it can be less. We suggest you carry as much UM/UIM coverage as you do liability coverage, again, the most you can comfortably afford, to make sure that you are protected no matter what the “other guy’s” economic or insurance status. Again, we recommend no less than $100,000. We predict that with the new cheap coverage available there will be many more drivers on the road with little or no liability insurance.

Verbal & Zero Threshold:

On the Lawsuit Limitation Option, what do “Verbal Threshold”, and/or “Zero Threshold” mean?
These terms all refer to “tort options” or differing rights to sue for non-economic damages in the event that you are injured in an auto accident. The new law continues to offer the option of giving up your rights to the court system in the event of an injury, in exchange for a large reduction in insurance premiums. On the new “basic policy” you are subject to limited options for liability coverage, reduced PIP (medical) benefits, no UIM/UM coverage and very limited ability to sue for injuries.

If you are purchasing a “standard policy” you will have the option of selecting the “Zero Threshold” sometimes called “No Threshold” for your coverage. By making this selection, you are permitted to sue without limitation for damages caused by any injuries resulting in pain and suffering, loss of quality of life, etc. If you select “Verbal Threshold”, sometimes referred to as “Lawsuit Threshold”, it is quite a different story. While choice of “Verbal” allows you to sue for injuries, it is only under very narrow guidelines and it can still potentially bar you from suing for damages due to injuries unless those injuries meet certain “threshold” criteria. If your injuries do not meet the threshold, you will not be entitled to sue for non-economic damages. This means, you will not be able to sue for any injuries barring those which are extremely severe.

Which option to choose:

Which option is the best choice for me?
Without a right to access the court system in the event of an injury, even a prolonged injury or death will not be compensated. You might be tempted to give up this right in exchange for a large reduction in insurance premiums. Weigh whether the cost savings offered is worth giving up your or your family’s ability to be fairly compensated in the event of an accident. We strongly advise against the “basic policy” in which there are very limited options offering the right to sue. And when you are looking at the “standard policy”, your insurance company and/or broker often encourage you to purchase “Verbal” or “Lawsuit” threshold because, they will point out, it is cheaper. Again, be sure you are aware that when you choose to save money on this coverage, you may be locking yourself out of the right to sue for injuries that may forever alter the quality of your life. Be sure you ask the exact difference in cost between the “Verbal” and “Zero” Threshold coverage. We highly recommend your choosing “Zero” or “No” Threshold coverage if you can afford it. It may be no more than $100-225 a year per car depending on the amount of your liability and UIM/UM coverage. Too often we have had to tell people who are suffering significant pain and discomfort as the result of an auto accident that they have no case because they have “Verbal” or “Lawsuit” Threshold coverage on their auto policy and their injuries do not meet the requirements that would allow them to sue for pain and/or suffering.

PIP:

What are Personal Injury Protection (PIP) benefits?
These are the coverage you receive from your auto insurance carrier without regard to whose fault the accident is. If you are involved in an auto accident, even if you are not in your own car, your insurance company is required by law to pay for your medical expenses. However, the new law allows many different options regarding these coverage. The most important thing to remember is that you want to maintain your right to choose your own doctor. Do not choose any plan requiring “pre-certification of all treatment” by an insurance company. Choose, if you can afford it, $250,000 PIP coverage since many private health plans exclude treatment for auto injuries or require repayment to them from any compensation awarded you.

Saving money on Collision & Compensation:

Can I Save money on Collision and Comprehensive?
The short answer is yes! These coverage is for damages to your car (including theft, fire, etc.) That are not the result of someone else’s negligence. Your insurance company pays you the cost of repair or replacement less the amount of the deductible you have chosen. The lower your deductible, the higher your premium. You may think you are playing it safe by selecting a low deductible because the insurance company pays more when you make a claim. However, if you were to file a claim every time you had a $500 dent in your car, your premiums would sky-rocket and/or your policy would be canceled. We advise that you increase your deductible to as high as you think you are financially able to absorb the cost of your own occasional damages. The money you save on this option can be applied to better coverage for protection against bodily injury and serious economic losses due to injury. What you save on Collision & Comprehensive can go towards providing you with “Full Tort” coverage. This is a smart transfer of costs if protecting your and your family’s health and financial security in the event of an accident is your goal.

General Rules of Thumb:

• Ask several insurance companies and/or agents to cost our your policy choices before you buy auto insurance. Ask each of them for ;more than one quote, showing the costs for the different options you would like to evaluate. Make this request in writing.
• Don’t ever purchase the “Basic Policy”. Do not think that the “cheapest” is always the best way to go. People are often surprised and disappointed at how little their coverages offer them when they find themselves a victim of an auto accident.
• If you are ever injured in an auto accident, do not rely on your insurance company’s claims adjuster to have your best interests at heart. Let decisions about your medical treatment be determined by you and your doctors, not by your insurance adjuster or the insurance company’s doctor. Remember, they tell you they are there to protect you but their real purpose is to make money!
• If you are ever in an auto accident in which you or any member of your family is injured, always consult a lawyer specializing in auto injury accidents. We, of course, suggest you call Kamensky – Cohen & Associates! Our attorneys have been practicing law in the New Jersey courts for over 25 years. And, along with giving special attention to Personal Injury Law…at Kamensky – Cohen & Associates, we specialize in people!

One last word:

You purchase auto insurance for safety and security, not just to comply with the law. Please take our advice, when you talk to your insurance agent or broker tell them you want coverage that protects you in case you or a family member is injured in an auto accident. You want an auto insurance policy that reflects your real needs…both for today and the future, one that will protect you and your family.

If you need guidance, Kamensky – Cohen & Associates will gladly answer any questions and offer advice tailored to your particular needs. Please call us or e-mail your questions.

Liability:
What does the “Liability” on my policy cover and how much should I be carrying?
Liability insurance is what protects your family and assets in the event you are charged with causing an accident. High liability protection can help assure you will not be financially stripped. By law, you are required to carry at least 15/30, or $15,000 for one person, up to $30,000 for more than one person injured in an auto accident for which you are charged as responsible. While this coverage pays the other driver for injuries he/she sustains, your concern is the protection it affords your assets from being claimed by the injured party. For example, if you only carry the minimum 15/30 coverage, and the injuries to the other party are judged at being valued at $100,000, you can be personally responsible for the amount greater than your insurance coverage…or $85,000! If you carry $100,000 liability coverage, your insurance company will pay the full $100,000 to the injured party and your assets will not be touched.

Coverage:
How much should you buy? The best answer is as much as you can afford. Ideally, no less that $100,000. It is not uncommon for juries to award in excess of the minimum coverage for serious injuries. Increasing your coverage to $500,000 or $1,000,000 can make good sense if you own property, have savings, and other assets that you need to protect. The good news is that the cost of incremental increases of liability coverage is far less than you would expect. The highest premium is for the first $50,000 in coverage because most awards for accident related injuries are in that range. Get the exact costs for each level of liability coverage from your broker or insurance company and then opt for the most you can afford.

UM / UIM:
What does Uninsured Motorist (UM) & Under Insured Motorist (UIM) Cover?
This coverage is critical! UM/UIM coverage protects you when you are the injured party and not responsible for the accident, but the person who is, either does not have auto insurance, or has insufficient coverage to pay for your injuries. Since their policy will not sufficiently cover what your damages are “worth”, your own auto insurance will make up the difference up to the amount of your UM/UIM coverage. While UM and UIM coverage is not required and can be waived to reduce your premium costs, we strongly recommend that you have this coverage to protect you and your family. For instance, If you have a $100,000 UIM/UM coverage on your auto policy and are hit by someone and your damages due to injuries and economic losses add up to $100,000, and the “other guy” has no liability insurance and no assets, your own UM/UIM coverage will cover your $100,000 in losses.

How much to buy:
We suggest you carry as much UM/UIM coverage as you can comfortably afford to make sure that you are protected no matter what the “other guy’s” economic or insurance status. Again, we recommend no less than $100,000. You would be surprised at how many drivers on the road have little or no liability insurance.

Stacking:
An option to consider when buying UM/UIM coverage is “stacking”. Ask your broker or agent to explain this term more fully, but in short, this allows you to accumulate the amount of the coverage available if you insure more than one automobile on your policy. For example, if you insure two cars with UM coverage at $50,000 each and you are hit by an uninsured motorist, even though only one of your cars was involved, you may “stack” the two coverages and collect up to $100,000 in damages from your own insurance.

Limited & Full Tort:
What is the difference between “Limited Tort” and “Full Tort” protection?
These terms all refer to “tort options” or differing rights to sue for non-economic damages in the event that you are injured in an auto accident. If you select “Full Tort” for your coverage, you are permitted to sue the party responsible for the accident for damages caused by any injuries resulting in pain and suffering, loss of quality of life, etc.

Limited Tort Explained:
If you select “Limited Tort” it is quite a different story. By making this selection, The choice of “limited” will bar you from suing the responsible party or your pain and suffering unless those injuries are determined “serious”. The definition of “serious” is “death, serious impairment of bodily function or permanent serious disfigurement.” The requirements to fulfill that definition are very specific and difficult to meet. If your injuries do not meet the threshold, you will not be entitled to sue for any pain and suffering you may have endured as a result of an auto accident even though you are not the person responsible for that accident. Also, remember that choosing this option means the same restrictions will apply to all others in the household covered by this policy.

The best option:
Without a right to access the court system in the event of an injury that does not meet certain legal definitions, even a prolonged injury will not be compensated. You might be tempted to give up this right in exchange for a large reduction in insurance premiums. Weigh whether the cost savings offered is worth giving up your or your family’s ability to be fairly compensated in the event of an accident. We highly recommend “Full Tort” coverage. Your insurance company and/or broker often encourage you to purchase “Limited Tort” because, they will point out, it is cheaper. Again, be sure you are aware that when you choose to save money on this coverage, you may be locking yourself out of the right to sue for injuries that may forever alter the quality of your life. Be sure you ask the exact difference in cost between the “Full” and “Limited” Tort. It may be no more than $100-225 a year per car. Too often we have had to tell people who are suffering significant pain and discomfort as the result of an auto accident that they have no case because they have “Limited” Tort coverage on their auto policy and their injuries do not meet the requirements that would allow them to sue for pain and/or suffering.

“First Party” benefits:
These are the coverages you receive from your auto insurance carrier without regard to whose fault the accident is. If you are involved in an auto accident, even if you are not in your own car, your insurance company is required by law to pay for some of the expenses you will most certainly incur as the result of an auto accident injury.

Basic First Party:
Basic First Party coverage includes medical expenses for treatment of injuries related to the accident up to $5,000 with no deductible. After $5,000 your health insurance will “kick in”. Additional medical coverage benefits can be purchased up to $100,000 which may be important if your health insurance is inadequate or if you are a member of an HMO requiring referrals from your doctor.

Other optional First Party benefits that can be purchased are income loss protection which can be important if you do not have disability benefits through your employer or if you are self employed; accidental death benefit; and funeral benefit. Ask your agent or broker about costs and coverages.

Saveing Money on Collision and Comprehensive:
The short answer is yes! These coverages are for damages to your car (including theft, fire, etc.) That are not the result of someone else’s negligence. Your insurance company pays you the cost of repair or replacement less the amount of the deductible you have chosen. The lower your deductible, the higher your premium. You may think you are playing it safe by selecting a low deductible because the insurance company pays more when you make a claim. However, if you were to file a claim every time you had a $500 dent in your car, your premiums would sky-rocket and/or your policy would be canceled. We advise that you increase your deductible to as high as you think you are financially able to absorb the cost of your own occasional damages. The money you save on this option can be applied to better coverages for protection against bodily injury and serious economic losses due to injury. What you save on Collision & Comprehensive can go towards providing you with “Full Tort” coverage. This is a smart transfer of costs if protecting your and your family’s health and financial security in the event of an accident is your goal.

General Rules of Thumb:

• Ask several insurance companies and/or agents to cost out your policy choices before you buy auto insurance. Ask each of them for more than one quote, showing the costs for the different options you would like to evaluate. Make this request in writing.
• Do not think that the “cheapest” is always the best way to go. People are often surprised and disappointed at how little their coverage offer them when they find themselves a victim of an auto accident.
• If you are ever injured in an auto accident, do not rely on your insurance company’s claims adjuster to have your best interests at heart. Let decisions about your medical treatment be determined by you and your doctors, not by your insurance adjuster or the insurance company’s doctor. Remember, they tell you they are there to protect you but their real purpose is to make money!
• If you are ever in an auto accident in which you or any member of your family is injured, always consult a lawyer specializing in auto injury accidents. We, of course, suggest you call Kamensky – Cohen & Associates! Our attorneys have been practicing law in the Pennsylvania courts for over 25 years. And, along with a focus on Personal Injury Law…at Kamensky – Cohen & Associates, we specialize in people!

One last word:
You purchase auto insurance for safety and security, not just to comply with the law. Please take our advice, when you talk to your insurance agent or broker tell them you want coverage that protects you in case of an injury auto accident. You want an auto insurance policy that reflects your real needs…both for today and the future, one that will protect you and your family.

If you need guidance, Kamensky – Cohen & Associates will gladly answer any questions and offer advice tailored to your particular needs. Please call us or e-mail your questions.