Auto Insurance: Are You Covered?

1. ARE ALL DRIVERS REQUIRED TO HAVE AUTO INSURANCE?
In Virginia – No.  In Maryland and DC – Yes, but only to a limited amount.

2. WHAT IS “LIABILITY COVERAGE”?
This is protection when you cause the accident and someone files a claim against you.

3. WHAT IF THE CLAIM AGAINST ME IS BIGGER THAN MY LIABILITY COVERAGE?
You are likely to be responsible for the damages you cause over the limits of your coverage.  Many policies provide very little coverage, frequently as low as $20,000 or $25,000.

4. WHAT IS UNINSURED MOTORIST COVERAGE?
Uninsured Motorist coverage is designed to pay for your damages if another driver injures you, but that other driver does not have any insurance.

5. WHAT IS UNDER-INSURED MOTORIST COVERAGE?
Under-Insured Motorist coverage, which is usually in the same amount as Uninsured Motorist coverage, is designed to protect you when you are injured by someone who has some insurance but not enough to pay the full value of your claim.

6. HOW DO I KNOW HOW MUCH UNINSURED OR UNDER-INSURED MOTORIST COVERAGE I HAVE?
Your policy will specify the amount of coverage on the Declaration page.   It is usually, but not always, the same dollar amount as your Liability coverage.

7. HOW DOES UNINSURED COVERAGE WORK?
If you are injured by an uninsured driver then you must file a claim against your own auto policy.  However, if you have only $20/$25,000 in uninsured motorist coverage, you will only receive the limits of your policy, no matter how seriously you are injured.  This means that in cases of death or serious injury, caused by an uninsured driver, the money available to compensate the victim may be very limited.

8. HOW DOES UNDER-INSURED COVERAGE WORK?
If you are hurt by a driver with a very limited amount of coverage, and your claim is worth more than the other driver’s coverage, you can make a claim against your own under-insured motorist (UIM) coverage.  This is possible only if your coverage is greater than the other driver’s coverage.  For instance, if the at-fault driver has $20,000 in coverage, and you have $50,000 in UIM coverage, you have access to $20,000 from the other driver’s policy, and $30,000 from your own coverage ($50,000 minus $20,000 = $30,000 of under-insured motorist coverage).   Purchasing sufficient UIM coverage is the most efficient way of protecting yourself and your family.

9. What is Personal Injury Protection (PIP) insurance and how does it work?
Personal Injury Protection (PIP) insurance is a feature of one’s car insurance policy that pays for medical expenses and lost wages arising from injuries sustained in a car accident regardless of who was at fault.  Maryland law requires that a car insurance policy include at least $2,500 in PIP coverage, which means that the injured driver’s own insurance will pay the injured driver up to $2,500 for medical expenses and lost wages.  Virginia law does not require Med-Pay (PIP) coverage but you must be offered the chance to obtain this coverage when you buy your auto insurance.

District of Columbia law on PIP benefits is very different, however, because the injured person must elect to either receive PIP benefits or bring a lawsuit against the at-fault driver, but not both.  If you are injured and elect to receive PIP benefits, you cannot bring a lawsuit against the at-fault driver unless the injury directly results in substantial permanent injury, or that the medical expenses or lost wages exceed the amount of PIP benefits available.  Since the decision to elect PIP benefits or to pursue a lawsuit involves a variety of factors, you should first consult with an experienced personal-injury attorney before making an election.

10. DO LIABILITY UMBRELLA POLICIES PROVIDE UIM COVERAGE?
In most cases these policies do not provide uninsured or under-insured coverage.

As you can quickly see, it is extremely important that you have adequate coverage to protect you and your family.  Our Virginia, Maryland and Washington DC car accident lawyers are happy to review your policy for you, at no charge, to help you understand your coverage.