| It is estimated that 10-15% of
Nebraska drivers are operating motor vehicles WITHOUT insurance. Many other drivers
purchase Nebraska minimum liability limits of $25,000 bodily injury per person/ $550,000
bodily injury per accident/ and $25,000 property damage. Iowa minimum limits are even
lower, $20,000/ $40,000/ $15,000. Eight other States have NO insurance requirements. We
are of the opinion that drivers are grossly underinsured if purchasing the state minimum
limits. IN THE NEWS Earlier this
year, an Omaha Insurance agency was simply selling auto Insurance ID cards without any
actual policy being Issued. The Insurance Department has shut down this operation.
INSURED BUT NOT INSURED
One of our clients was recently involved in an accident (other driver's fauIt) where the
other car was insured, but the driver was excluded from the policy. Strange situation, but
it meant that there was NO insurance from the at-fault party to cover our client's
damages.
You need to make sure your insurance is
properly designed before you are involved in an accident. |
ITEM #1 You need to carry adequate
liability limits to protect you, your family, and your business in the event you, a family
member, or employee are involved in an at-fault accident.
Commercial auto policies are usually written with a
$500,000 or $1,000,000 limit of liability. In addition, many businesses purchase an
umbrella policy to extend these limits. As a rule of thumb, size and scope of the business
goes hand-in-hand with selecting adequate limits. Special attention needs to be given to
owners, partners, officers, and their families regarding business auto coverages and how
it fits their personal use of vehicles. |
Personal (Family) auto
policies are popularly written with limits of $100/300/100 and only a few families
carry a personal umbrella. Without a personal umbrella, these limits are not adequate. We
recommend "combined single limits" of $300,000 or $500,000 for all families. In
addition, a personal umbrella is recommended for maturing families as they acquire more
assets. Remember you are protecting your personal assets, income, and reputation. ITEM #2 You need to carry adequate uninsured and underinsured
(UM) limits to protect you and your family from those less responsible drivers. We have
helped several clients recently who have suffered injuries caused by uninsured or
underinsured drivers. In one of these cases, our client collected his entire UM limits of
$300,000. This was a serious life changing accident. Imagine if you were permanently
disabled and never again to enjoy the work you were trained to do or enjoy the quality of
life you once had. Adequate UM limits can provide primary protection or supplement your
health, disability, and life insurance benefits.
It is our recommendation that our clients carry the same
"combined single limit" UM limits as their liability limits ($300,000 or
$500,000). Remember, a personal umbrella DOES NOT increase your UM limits, these limits
stand on their own. It only costs a few dollars more per vehicle per year to increase your
split limits from $100/300 to combined single limits of $300,000 or $500,000. A personal
umbrella costs about $100-150 per year. |
