Do you have the proper car insurance?

Do you have the proper car insurance?

When I was involved in conducting accident investigation, the most common question was "do they have insurance?" 

I always told them that they would get the other driver’s insurance information on the information sheet I would give them after my investigation was complete.

A few days later, I would receive a phone call from one of the involved drivers claiming that the insurance information on the report was not valid.

As an investigating police officer, I can only get information that was given to me at the scene and appeared to be valid. We do not call the insurance company to make sure that the driver was current in his payments or that his policy had lapsed. If the documents they produce at the scene appear to be valid, that is the information that is documented on the accident report.

Inevitably, a driver would neglect to pay his insurance policy during the contract period, but his proof of insurance document would show the expiration date in a few months.

The phone call involving the other driver would consist of their request for me to follow-up on the insurance. At that point, we cannot track down the other driver to issue another citation or summons into court and I would tell the other driver to contact his own insurance company for follow-up.

A few days later, I would receive another phone call from the same driver, stating that his insurance company was not going to pay his claim because he only had liability insurance with no coverage for underinsured/uninsured drivers.

Sometimes, I would receive a tongue lashing, as if it was my fault for allowing the other driver to operate a motor vehicle, uninsured in the state of Nevada. 

I understand vehicle insurance is expensive, and the economy is in the toilet, and a lot of people are out of work, but having a vehicle is a priority to get around. Many folks are able to pay off their vehicle loan, and immediately drop their insurance coverage from full coverage to liability only.

When this change comes into play is when they become involved in a vehicle accident that may or may not be their fault. For instance, we have a high incidence of hit and run drivers, which leaves the victim driver with little or no information about the other car and driver. When the victim driver contacts his own insurance company, he may be told that he only has liability insurance and is not covered in the accident. The vehicle may be totaled and is written off with no compensation towards a new vehicle.

The few dollars per month you save reducing your coverage will not be worth it when you find out your vehicle is being totaled.

Talk to your insurance agent about your coverage. Don't just try to get the lowest amount of monthly payment. Ask your agent about roadside service, towing, rental cars, underinsured/uninsured motorists, deductibles, and your coverage amounts. Nevada has a minimum 15/30/10 law which means they cover 15,000/30,000 per accident for injuries. For example, if one person was injured, they may receive $15,000 coverage. If it was two injured in the accident, each person would receive $15,000 coverage. The third number is for property damage.

There are very few vehicles on the road, if totaled, that would be covered by the $10,000 limit, and the cost of medical care is beyond belief. An ambulance trip alone will cost you about $1000. Depending on the treatment you receive at emergency, it could cost anywhere from $500 on up. If you received a broken bone, and a minor surgery, I'm sure that would eat up the minimum coverage.

Take some time and go over all the "what if" scenarios.

A few dollars extra per month could save you several hundred per month in new car payments.