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The Importance of Uninsured Motorist Coverage

Frequently we see customers who select minimum limits on their Uninsured Motorist (UM) coverage. However, this could very well be a case of being penny-wise and pound-foolish.

First of all, UM is coverage for you & your passengers. Statistically, one out of every four drivers in California is uninsured. The next time you are on the road, look at the drivers around you. The odds are one of the first three cars you see is uninsured.

UM is a very inexpensive coverage to buy. As an example, one personal auto policy I looked at that had $100,000 per person / $300,000 per accident limits for UM portion & was only $32!

Many people think that UM isn't important because their collision and medical insurance will cover these expenses. However, even in the best of circumstances the medical insurance deductibles will not be covered. In addition, some medical insurance policies could exclude injuries caused by another. And, what about your passengers? Your medical insurance certainly wouldn't cover them.

As a guideline, you may want to consider setting the limits for UM to be the same as your regular automobile liability limits. So, for example, if you have 100,000/300,000 liability limits, you would also want have 100,000/300,000 limits.

If you would like us to take a look at your coverages, give us a call. We can go over your policy over the phone and can easily make any changes you would like in order to give you added comfort.

Things you can’t do anymore

Most people are aware that effective July 1, 2008 drivers must use a hands-free device. Either a corded headset or one of those Bluetooth earpieces or speakerphones will do. Some of the new cars out have the speakerphone built in, which is nice since it turns itself on and off automatically.

The other cell phone law that went into effect makes is illegal for drivers under the age of 18 to use a cell phone while driving, even with a hands-free device. I read an article about a study in North Carolina. They already banned cell phones for teenagers in 2006. The study concluded that the law made no difference in teen drivers cell phone use. With a new teenage driver, I’m all for safety. I just hope all these laws make a real difference.

Here are a few other new laws that went into effect this year:

• License Plates – new illegal to sell or use covers that prevent the cameras on street lights from capturing the plate number.
• School Zones – allow local authorities to create a 15MPH speed limit in school zones.
• Street Racing – reestablished a law allowing the 30-day impound of vehicles when the driver is arrested for street racing, exhibition of speed or reckless driving.
• Smoking in Vehicles – smoking not permitted in vehicles where a minor is present.
• Traffic School – Drivers convicted with two-point violations, which include drunk driving, hit-and-run, speed contests, evading an officer or vehicular manslaughter, will not be allowed to attend traffic school.

I was going to list more, but it started getting depressing. Why is it that we don’t read about laws that have been removed?