Articles

January 2006

I have never been one to make New Year’s resolutions, but this year was the exception. As a personal injury attorney practicing for nearly 30 years, I have represented hundreds of clients in cases involving automobile accidents. Too often there is not enough available insurance to cover the injured person’s losses. I am so disturbed by the inadequacy of most people’s automobile insurance coverage that I have decided to share some simple, helpful information with as many of my clients, friends, neighbors and others as I can. So far, I have sent over 300 letters and my goal is 1, 000 by the end of 2006. It is my hope that you and your loved ones will beadequately covered should you ever be in an accident. For only a slight increase in insurance premium cost, most of the clients that got short changed could have been fully compensated. All of them told me they really did not fully understand what coverage they were buying and why. I am sorry to say that some insurance agents do not fully explain what they are selling and, as agents of the company, may be discouraged to sell you coverage that you should have.

Part of the problem is the current level of mandatory minimum liability limits. In Virginia, an automobile must have coverage in the minimum amount of $25,000 per person and $50,000 per accident for bodily injury and $20,000 for property damage. These limits have not changed since 1976. Had the limits increased to keep up with inflation over the years, equivalent coverage would be $85,000 per person and $170,000 per accident in today’s dollars. This equivalent coverage amount is based on general cost of living inflation since 1976. Inflation of medical costs increased at about twice the rate of the general cost of living during the same period. As medical expenses are a major component of almost every personal injury claim, even more coverage is needed to keep up with inflation in that sector.