What is in my insurance?

Minnesota personal injury attorney James Heuer describes what exactly is in your insurance for automobiles.

Contact James Heuer

Phone: (612) 333-3160

Transcript:

So we’ve talked today about car insurance, okay, probably the most common case that we handle here at Heuer Fischer, okay and if you have car insurance there’s several coverages that are mandatory. The first one’s liability coverage, the second one is your medical expense, the third one is your economic loss compensation and under Minnesota law, the minimum coverage that you can carry is $30,000.00 for liability, $20,000.00 for wage loss, economic loss, and $20,000.00 for medical bills.

Then you also have under insured and uninsured coverages those minimums are a little bit different their minimum is twenty-five fifty. But today most people would be doing a great disservice to themselves and their families if they don’t carry at least $100,000.00-300,000.00 of all coverages. And that would include the uninsured and under insured coverage. Because if you make $10.00 an hour you’re going to get $400.00 a week and the minimum paid by your insurance company under the economic loss portion is $500.00. So if you make $12.00 an hour you’re going to get the maximum because you get 85 percent of your wage loss, which is tax free, up to a maximum of $500.00.

So there not a lot of people out there that can get by on $12.00 an hour if they own their own car and they’re out there. So I always encourage people to sit down with your insurance agent and have an insurance agent to explain what’s going on rather than relying on a TV ad but how you can take 15 minutes and save 10 percent because that won’t help you when you get hurt.

I mean I had a case where a lawyer came from an insurance company and asked me to help them evaluate a case and I said sure, it’s a small community, and we talked to them. And I said, well it’s a brain injury case why aren’t you settling it? Well because his client, the insured, only had $30,000.00 in coverage. I said okay, so settle it. Well it turned out that his client and his client’s wife were both physicians and they only had $30,000.00 in coverage and they were making a couple hundred thousand dollars a year and the at fault driver could have gone after that doctor for not having enough car insurance and would have gone after their personal assets. So the idea about the insurance is to protect you from if you make a mistake and then, if the person that makes a mistake and hurts you doesn’t have enough insurance coverage then that’s where your under insured coverage comes in or uninsured if they’re to insured.