Many people mistakenly think that they have full coverage with their Massachusetts automobile insurance policy.  In my experience, this is frequently not the case for all optional coverages.

For example, someone may have $100,000/$300,000 for Optional Bodily Injury to Others on their policy, but only $20,000/$40,000 for Uninsured or Underinsured Motorist Benefits.

What difference does that make?  Well, no difference until something goes wrong like an accident occurs resulting in serious injury.  If you are injured in a car accident caused by another driver with only minimum insurance coverage or, worse, no coverage at all, you yourself may be limited to the Massachusetts minimum coverage of $20,000 unless you purchased additional insurance coverage such as $100,000/$300,000 for Uninsured or Underinsured Motorist Benefits or, better yet, the maximum coverage of $250,000/$500,000.

Why do I need extra coverage?  Well, that’s a personal decision that everyone must make based on your comfort level managing risk.  That’s what insurance is all about – managing risk.

What if you suffer a severe shoulder injury as a result of a car accident requiring surgery?  You may have medical expenses in excess of $10,000 and may be disabled from work for a long time – possibly 6 months to a year.  If the negligent driver who caused the accident only has minimum coverage, you and your family may suffer a severe economic loss with limited legal compensation.  In this example, most of the money would go to pay the medical bills leaving little left over to support you and your family while you’re recuperating from surgery.  However, if you purchased additional coverage for Underinsured Motorist Benefits in this example, you will have additional available insurance coverage through your insurance policy to compensate you for your injuries.

Do you have enough insurance?  It’s really up to you.  At the very least, the amount of coverage for Optional Bodily Injury to Others, Uninsured Motorist Benefits and Underinsured Motorist Benefits, in my opinion, should be the same and should be as much as you are comfortable purchasing – especially if you own your own home.
Copyright © 2009 John J. Sheehan