{"id":32273,"date":"2008-03-26T16:35:41","date_gmt":"2008-03-26T21:35:41","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/uncategorized\/what-you-don-t-know-about-the-new-auto-insurance-laws-can-hurt.html"},"modified":"2008-03-26T16:35:41","modified_gmt":"2008-03-26T21:35:41","slug":"what-you-don-t-know-about-the-new-auto-insurance-laws-can-hurt","status":"publish","type":"corporate","link":"https:\/\/corporate.findlaw.com\/corporate-governance\/what-you-don-t-know-about-the-new-auto-insurance-laws-can-hurt.html","title":{"rendered":"What You Don’t Know About the New Auto Insurance Laws Can Hurt You"},"content":{"rendered":"
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On or about March 22,1999, the new auto insurance rules became effective. These changes should take effect when you renew your auto insurance. Here some tips to protect you and your family:<\/p>

Basic Policy Does Not Provide You Necessary Protection.<\/b><\/p>

When you renew your auto policy, you will have a choice between a "basic policy" and the better levels of coverage found in a "standard policy." The standard policy will protect you and your family. But the cheaper basic policy is so lacking in coverage that it provides you little more than an insurance card.<\/p>

The new basic policy provides no bodily injury liability coverage, no defense against lawsuits and no protection.<\/p>

If you're a basic policyholder involved in a collision that's only partly your fault, you could lose your license, your car, your income and other assets. Even if you believe you have no assets to protect today(or that your college-bound son or daughter have nothing to protect), consider this: An unpaid judgment is a 20-year judgment. The assets you may gather for the next two decades–a better salary, a new house–are subject to being taken to pay the judgment. And until that judgment is satisfied, you can't own a car and you can't drive, not even to your job.<\/p>

The savings offered by insurance companies to drivers who choose the basic policy may seem too good to pass up. But pass it up. In this case, a premium discount simply isn't worth it. You risk financial disaster. Therefore, I recommend making sure you opt for the standard policy.<\/p>

Get the Highest Uninsured\/Underinsured Coverage<\/b><\/p>

Uninsured\/underinsured coverage protects you and your family if you are hit by a poorly insured driver. This coverage is critical. Since some drivers will continue to go without insurance, others with only a small amount of insurance, or still others will elect the new "basic policy." You need the highest uninsured\/underinsured (UM\/UIM) coverage possible. This is inexpensive and can be made as high as your liability coverage.<\/p>

Get Good Liability Protection<\/b><\/p>

Liability insurance is what protects your family and assets in the event you are found responsible for causing an accident. High liability protection can help assure you won't be financially stripped. We recommend that you purchase no less than $100,000 bodily injury liability and uninsured\/underinsured coverage.<\/p>

On the Lawsuit Limitation Option<\/b><\/p>

The new law continues to offer the option of giving up your rights to the court system in the event of an injury, in exchange for a large reduction in insurance premiums. Without those rights, though, even a prolonged injury may not be compensated. Weigh whether the cost savings offered is worth giving up your or your family's ability to be fairly compensated in some circumstances if an accident should happen. We recommend that , if at all possible, you purchase the No Limitation on Law Suit Option.<\/p>

On PIP Options and Medical Coverage<\/b><\/p>

The new law allows may different options regarding medical coverage. You want to maintain your right to choose your own doctor. Do not choose any plan requiring "precertification of all treatment" by an insurance company. Choose $250,000 PIP coverage, since many private health plans exclude treatment for auto injuries or require repayment to them from any compensation awarded to you.<\/p><\/div>","protected":false},"excerpt":{"rendered":"

On or about March 22,1999, the new auto insurance rules became effective. These changes should take effect when you renew your auto insurance. Here some tips to protect you and your family: When you renew your auto policy, you will have a choice …<\/p>\n","protected":false},"template":"","meta":{"_acf_changed":false,"_stopmodifiedupdate":true,"_modified_date":"","_cloudinary_featured_overwrite":false},"corporate_categories":[6474,6476],"class_list":["post-32273","corporate","type-corporate","status-publish","hentry","corporate_categories-corporate-governance","corporate_categories-corporate-governance__insurance"],"acf":[],"_links":{"self":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate\/32273","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate"}],"about":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/types\/corporate"}],"wp:attachment":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/media?parent=32273"}],"wp:term":[{"taxonomy":"corporate_categories","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_categories?post=32273"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}