SILVER BULLETIN

ISSUE FOUR

From the desk of Barry Stewart Silver, Attorney at Law

WATCHING OUR FOR THE OTHER GUY:
PROTECT YOURSELF FROM UNINSURED DRIVERS

You abide by the rules of the road, you drive defensively. You maintain auto insurance on your vehicle.

And the one day, your car is hit by an uninsured driver.

What do you do? Who pays for your damages and injuries? What are your rights? And what happens to the other driver?

• Look At Your Own Insurance Policy

  First, read your own auto insurance policy—because it provides coverage for both your vehicle and the personal injuries that you and your passengers may sustain.

  Damages to your auto are covered under "Collision Coverage," following satisfaction of your deductible.

  Personal injuries are covered under a benefit called "Uninsured Motorist Coverage." In Illinois, every auto insurance policy contains at least $20,000 Uninsured Motorist Coverage per person and $40,000 per accident.

  Therefore, you can file a claim with your own insurance carrier. Most insurers will not count such an accident towards your record—so your rates shouldn't increase as a result of the claim. Your insurance company will compensate you, and then try to recover its expenses from the uninsured driver.

• Consult Your Attorney

  If you do suffer injuries as a result of the accident, you may find your insurance company offering you a speedy settlement. Before you do anything consult your attorney. Don’t accept any offers before obtaining legal advice.

  Why? Because of one simple fact: settlements are smaller when accident victims don't consult legal counsel. Your attorney—hopefully, that's me—will see that you get the largest possible settlement.

• Be Proactive

  There is something else you can do to protect yourself from uninsured motorists, and unfortunately there are plenty out there.

  Review your auto insurance policy—and increase the benefits if necessary. Make sure you have an adequate amount of Uninsured Motorist Coverage. The $20,000 minimum required by the state won't come close to compensating you for a serious injury. We recommend at least $250,000 per person and $500,000 per accident. It won't cost you much (perhaps $50 per year), and it's a benefit that's worth every penny. (Also, make sure your underinsured motorist coverage is in the same amount as the uninsured motorist coverage. More about this in the Fall issue of the Silver Bulletin.)

  In addition be sure you have coverage for Medical Payments. It's not required under state law, but it's a smart—and inexpensive—benefit to have. It picks up where your health insurance leaves off, paying deductibles, coinsurance and co-pays. It also allows for speedy reimbursement while waiting for your medical carrier to process your claims. And at less than $20 per year for $10,000 of first-dollar coverage, it's one of the best bargains around.

• Now, About That Uninsured Driver

  What, about the culprit who created this mess in the first place? Most likely, your carrier will attempt to collect some or all of its expenses from him or her. Your carrier might file a lawsuit—and if a judgement is obtained, that driver could lose all driving privileges. (If the driver doesn't have a license, he or she might also serve some jail time.)

  And in the future, that uninsured driver will be legally required to purchase more expensive Financial Responsibility Auto Insurance before his or her driving privileges are reinstated.

  Unfortunately, however, if your insurance carrier chooses not to pursue a lawsuit against the driver, he'll be back on the road again with little more than a fine! No, it's not fair, but that’s the way it is—and that, of course, is all the more reason why you need to protect yourself.

BRIEF REMINDERS

How's Your Underinsured Motorist Coverage?

You may have great auto insurance—but what if the other driver doesn't? Illinois law only requires a minimum of $20,000 liability coverage per person and $40,000 per accident. That won't come close to compensating you for a serious injury. In that unfortunate circumstance, your auto policy's underinsured coverage comes to your aid. Be sure you have enough protection.

Our recommendation: make sure you carry a minimum of $250,000 per person and $500,000 per accident in your liability, uninsured and underinsured motorist coverages. It isn't that much more costly— and it's worth every penny.

Barry Stewart Silver
707 Skokie Boulevard, Suite 505
Northbrook, IL. 60062
847-480-2070
Copyright © 1998, Barry S. Silver, P.C. All rights reserved.

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