I taught a paralegal course and asked the students about the insurance coverage they carried on their cars and trucks. To my surprise, most students did not know what types of coverage they carried and the amounts of each form of coverage. I hear the same thing when I ask my clients the same thing. Their responses are generally that they carry “what the law requires” or “full coverage,” not really understanding what these phrases mean.
Arkansas law requires that you carry not less than $25,000 for the bodily injury or death you cause to another, $50,000 for bodily injury or death to two or more persons and $25,000 for property damage that you cause. Obviously, if you carry these minimum limits and you cause serious injury or death to another, your insurance will not even come close to compensating the person or family that you have harmed. Or, if you cause an accident and total the other driver’s new $75,000 Mercedes Benz, your minimum coverage will leave you with a $50,000 bill once your insurance pays the $25,000.
There are other coverage types available, such as medical and disability income (PIP), collision and comprehensive, and uninsured motorist and underinsured motorist coverage. Usually, an insurance agent does not sit down and explain all of these coverage and tailor a policy to your needs. They frequently just give you quotes for each package and expect you to know what they are telling you.
As a free service to the public, we would be glad to discuss the various forms of coverage and explain how each may benefit your needs. Some car accidents can destroy a person’s finances or force them into bankruptcy even if they were not at fault. Don’t let this happen to you.
If you have questions regarding insurance coverage, call Nolan Caddell Reynolds at 479-782-5297 or toll free at 1-800-671-4100. You can also find us online at www.nolancaddellreynolds.com.