3 Mistakes People Make When Buying Auto Insurance

Posted By: Tony Baratta | June 8th, 2021


Anyone who has been injured in a car accident caused by someone else has the legal right to seek compensation for damages. In cases of death, the family of the deceased can file a lawsuit against the driver at fault to recover compensation.

In most states, the damages that should be awarded to the injured party or to the family of the deceased are shelled out by the at-fault party’s insurance company, which makes it vital that every motorist has auto insurance to cover accidents and protect themselves.

Car accidents are among the biggest causes of deaths and serious injuries in the United States. But unfortunately, there are a lot of motorists who do not have auto insurance coverage. Some of those who do buy too little insurance that isn’t enough to cover the costs.

When buying auto insurance, it’s important that people take their own safety and well-being in mind and get the best coverage that will support them. Below are the 3 mistakes people make when buying auto insurance that motorists need to avoid.


1. Thinking They Don’t Need Auto Insurance

Many motorists are reluctant to get auto insurance simply because they think they don’t need it. They are confident in their driving abilities and are sure that they will not be caught up in a motor vehicle accident.

However, car accidents are unpredictable. No matter how careful a driver is, the same cannot always be said about other motorists. Several car accidents are caused by things that the injured party has no control over. In fact, about nine people are killed and over 1,000 people are injured in the United States due to distracted driving.

Every driver needs auto insurance, regardless of how careful they are on the road. It can help protect them from expenses in case of accidents — even if they took no part in causing them.


2. Buying Too Little Insurance

There are many types of auto insurance coverages with different coverage costs. Just because a motorist has purchased an insurance policy, even the lowest one, does not mean that they are fully insured. There are auto insurance policies that do not have good coverage.

Drivers are advised to buy what is known as underinsured motorist coverage, which can protect them and their families in case of accidents caused by reckless drivers. If the at-fault party in the accident does not have insurance coverage, which happens far too often, they can claim compensation from their own insurance policies.

The liability coverage found in most insurance policies protects a driver in case they are found to be at fault in a car accident and are ordered to compensate the victim for damages. On the other hand, underinsured motorist coverage enables a driver to still retrieve compensation even if the at-fault party does not have adequate insurance coverage.

It’s worth noting that a motorist cannot buy more underinsured coverage than they have in liability coverage. With that, they need to make sure that their liability coverage is sufficiently high so that they can buy underinsured motorist coverage in exactly the same amount.


3. Not Considering Change

Despite being aware that their insurance policies are not enough to cover the costs of unforeseen accidents on the road, some people are still reluctant to change their policies or to increase them. However, they must realize that auto insurance is the one way that they can protect themselves financially from the careless, reckless, and distracted drivers on the road.

It’s important that everyone takes a second look at their auto insurance policies and make sure that it’s enough to cover the costs of liability or accidents in case the at-fault party is uninsured or under-insured.

A lot of the things that happen on the road are uncontrollable to the victim. Having adequate auto insurance coverage gives them financial relief in case of accidents caused by others.


About the Author

Anthony J. Baratta (Tony) is a trial attorney. He has tried more than 50 cases to Juries in State and Federal Courts and has litigated thousands of personal injury and medical malpractice cases in his 30-year career. Tony is the founding partner of Baratta, Russell, & Baratta and an active board member of the Pennsylvania Brain Injury Association (BPIA). Tony is also on the board for the Philadelphia VIP and performs pro bono work for the Laurel House, a non-profit for victims of domestic abuse. In addition, Tony is a member of the Million Dollar Advocates Forum for trial attorneys, voted one of Philadelphia’s Super Lawyers for the past 14 years, and a 2018 recipient of the First Judicial District Pro Bono Award for the Civil Trial Division.

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