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Auto Insurance "Reform"

By now we are sure that you have read various newspaper reports concerning auto insurance “reform.” Now, as a result of the attempts of our legislature to look out for your best interest, if you desire to save a nominal amount on your insurance premium, and select the verbal “lawsuit” threshold, you will only be able to sue for pain and suffering caused by someone else’s negligence if you are killed, dismembered, suffer a significant disfigurement, a displaced fracture, loss of fetus or are permanently injured. The question that will be answered by the Court and Jury is whether or not a “permanent injury” has occurred or whether the injury is a “significant disfigurement”. However, this new threshold is intended to be much more restrictive of your rights than the existing “lawsuit threshold.”

There is, however, still one option remaining to protect you and your family in the event of an automobile accident. This option is to select “no threshold” on your car insurance policy for an additional premium. This choice will protect your family from injuries caused by someone else’s negligence, even if your child is traveling in a vehicle not owned by you.

Another aspect of this “reform” is to allow the purchase of mini policies with limited coverage at a reduced cost. It is expected that these policies will be popular in urban areas. In light of this change, it is doubly important to make sure your uninsured/underinsured motorist coverage is at least as high as your liability limits.

Of course, if you have any questions concerning the above, please feel free to call our office.

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