Cohen and Cohen asks: Do You Understand Your Auto Policy? by Wayne Cohen

For legal help and a complimentary consultation with Wayne Cohen, please visit his main site at CohenAndCohen.net

Cohen & Cohen realizes that understanding your car insurance policy can be difficult. As a result, people often end up with policies that do not provide the right protection. Here is some basic information which you may not know.  First, it is critical that you contain the right amount of coverage.  Wayne Cohen, the founder and managing partner of Cohen and Cohen, P.C.,suggestion is that you carry the maximum amount of “liability” coverage.  This will protect you in case you happen to cause an accident.  

Second, make sure that you have “uninsured motorists protection.”  This  insurance provides protection if you are struck by a driver who does not have insurance, or by a hit and run driver. Most states require that your insurance company provide you with this protection.  

Third, a good insurance policy will also contain “under insured motorists protection.”  This type of insurance provides protection if you are struck by a driver who has only limited insurance. For example, if you suffer a serious injury by a driver who has only a $25,000 policy, but you have a $300,000 policy, you are eligible for $25,000 from the other driver and $275,000 from your policy (i.e., this equals $300,000).  

Fourth, “personal injury protection benefits” coverage (PIP) provides protection for medical bills and, sometimes, a portion of your wages, even if you are at fault in an accident. In some jurisdictions such as District of Columbia there are limitations on whether a person can make a PIP claim and pursue a claim for compensation.  

Fifth, many companies offer “gap coverage.”  This type of policy provides protection on your financed vehicle. Essentially, if you financed $20,000 on your car and have an accident, but the value of the car at the time of the accident is only $18,000, “gap” coverage may apply and help make sure you are whole.  

Sixth, it is imperative that you carry collision coverage.  Collision coverage provides protection when your car is damaged. Keep in mind that having collision coverage in the amount of $250 as opposed to $500 or $1000 may increase the amount of your insurance, especially if you are not inclined to make a damage claim for an amount which is less than $1000. You may want to get different quotes from your broker.  The attorneys at Cohen & Cohen, P.C. can help you pick the right one!