Why This Lawyer Says You Should Buy Car Insurance From An Independent Broker
I don't sell car insurance, but as a lawyer practicing in thefield of personal injury I frequently see people suffer becausethey have the wrong insurance coverage. Often, this happensbecause they purchased directly from an insurance companyinstead of an independent broker. Many of my clients who have been seriously hurt in a caraccident were struck by someone who had no insurance or only theminimum liability insurance coverage, which is $25,000 in NewYork and much less in many other states. Unfortunately, many ofmy clients were sold insurance policies with liability limits of$100,000 or $300,000, but were not sold matching uninsured andunderinsured coverage. Just this week, yet another new client had this problem. Myclient was a pedestrian crossing the street when she was struckby a car which fled the scene. The driver was caught shortlyafter leaving the accident, but the owner of the car only hasthe New York State minimum liability insurance of $25,000 and myclient has serious injuries consisting of many broken bonesincluding a fractured arm, leg and skull. My client owns a car with liability insurance limits of$300,000, but she purchased the insurance from GEICO whosesalesperson didn't sell her underinsured coverage. GEICO doesnot use independent insurance brokers, but sells insurancedirectly to consumers through in-house sales agents. For a small fee, my client could have purchased underinsuredcoverage of $300,000 which would have allowed her to recover$300,000 for her injuries instead of $25,000. Ironically, shedid not need the $300,000 liability coverage to protect herassets. However, since you cannot buy underinsured coveragehigher than your liability coverage, I would have advised her topurchase $300,000 liability coverage for the sole purpose ofbeing able to purchase $300,000 underinsured coverage. I have had many clients in this situation who lost their jobsbecause of serious injuries and incurred substantial debt. Ifthey had matching underinsured coverage, the additional moneyavailable to pay their claim would would be a big help to paytheir bills and get their life back together. Underinsured motorist coverage will pay you money from your ownautomobile insurance policy if you have been hurt in a caraccident by someone who was negligent for causing your injuryand who had less liability insurance coverage than you did.Uninsured motorist coverage will pay you when the other car didnot have any insurance coverage or the identity of the other caris unknown. Underinsured and uninsured coverage is inexpensive and usuallyavailable in limits that match your liability insurancecoverage. It is not available in amounts greater than yourliability insurance coverage. Underinsured and uninsured coverage is so important that acouple of states now require coverage limits matching yourliability insurance limits, unless you decline the coverage inwriting. Several years ago, I suggested to several New YorkState senators that they enact a similar law in New York. I have also seen many clients who were not sold the maximummedical payments insurance, which costs me only $2.01 per monthon my car insurance policy. This is particularly important forpeople who do not have a good health insurance policy. It isalso beneficial for passengers who do not have health insurance. Why should you buy car insurance through an independentinsurance broker? The courts have defined the reason. There havebeen several "malpractice" lawsuits against insurance companiesfor failure to offer underinsured and uninsured motoristscoverage limits matching the liability limits. However, when theinsurance company sells directly to consumers, these cases havegone in favor of the insurance companies. The courts found thatwhen a consumer buys insurance directly from an insurancecompany, rather than an insurance broker, the consumer is onlybuying insurance and is not paying for advice. When you buy auto insurance from an independent insurance brokerwho represents several different insurance companies, you getthe advantage of an insurance professional who can evaluate yourneeds and advise you accordingly. Additionally, only anindependent insurance broker can provide you with a choice ofinsurance companies and premiums, so you get the best coverageat the lowest price. Whether you buy your car insurance directly from an insurancecompany or through an independent insurance broker, always makesure that you purchase matching uninsured and underinsuredmotorist coverage and the maximum medical payment benefits.
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