Your Coverage Protects You even when You are not at Fault
The importance of maintaining high insurance liability limits is highlighted in a case I handled for a woman who was injured in an automobile collision. She was a passenger in a vehicle that was struck by another car at an intersection. The other driver only had coverage of $50,000.00, clearly not enough to compensate my client fairly for her injuries, which included a severely fractured arm that required two surgeries and months of rehabilitation. Her medical bills alone were nearly $30,000.00, and, as she had no private health insurance, she had no way to pay for them. The at-fault driver's policy ($50,000.00) was offered to my client as compensation for her injuries, but this was hardly enough to make her whole.
In this situation, and situations like these, the underinsurance policy becomes relevant and important. The driver of the vehicle in which my client was a passenger had a policy of $100,000.00. Thus, the difference between that limit and the limit of the other driver can be pursued by my client to compensate her fully for her injuries.
This scenario illustrates rather emphatically why you need to double-check your own coverage for your own benefit and protection. There are many examples of situations where inadequate insurance could impact you, your family, or your assets. You could be injured in a collision with a driver with minimal liability limits and never be compensated fully for your injuries. You could rear end another vehicle, severely injuring the occupants in your car and the other car.
I cannot emphasize enough the fact that you can be personally liable for damages beyond your policy limits. Also, keep in mind that while you may be extremely responsible, not everyone listed on your policy is as conscientious as you. All it takes is one "mistake" to jeopardize your assets.
As an injury lawyer, I often fight against insurance companies, but my years of experience doing this make me keenly aware of the reasons why having adequate coverage is beneficial to everyone. My aim is simply to make people aware of the risks of inadequate coverage.