Law Offices of Stephen A. Markey, III, P.C. Newsletter 

Protecting Yourself with Sufficient Automobile Insurance

        One of the first questions we address with clients after they have been involved in an automobile accident is "what are the amounts of automobile insurance coverage that [the client] carried at the time of the accident?" Even when the accident was the other driver's fault, the amount of coverage carried by our client is very important. Unfortunately, often times I find that our clients have to be educated on the amounts of coverage that they should carry, which is often too late. Obviously the more coverage that you carry the better that you are protected in the event that an accident is your fault or the fault of someone driving your vehicle. Less obvious is the fact that automobile insurance should also protect you and the passengers in your car, in the event that the other driver is at fault and has no insurance or inadequate insurance. Your insurance will also cover you in a hit and run accident, with a phantom vehicle, or if you are struck as a pedestrian. The following are suggestions on the minimum coverages that you should carry. 

    Liability coverage: Liability coverage is what most people think of when they talk about automobile insurance. How much am I covered in the event that the accident is the fault of the driver of my vehicle? The amount of liability coverage on your vehicle determines the extent to which you are protected if either you or the driver of your vehicle, are determined to be at fault. It is usually reflected as an amount per person and an aggregate amount for all persons involved in the accident. Therefore, the policy might read $300,000/$500,000, which means there is $300,000 available for any one individual injured in an accident, and $500,000 available for all persons injured in an accident. In today's society it is not unusual for individuals to have significant medical bills following an automobile accident. If you or someone driving your vehicle is at fault, causing death or serious injury to another party or multiple parties, and if you have minimal insurance, you may find yourself paying out of your personal assets. Just as important, if you are the cause of an accident and somebody is killed or seriously injured, there is at least some comfort in knowing that the individual or family will be at least financially compensated when you carry adequate insurance. Whether the carrier pays $500.00 or $500,000, your insurance rates will go up the same amount. Your concern should be your personal assets and taking care of the person or persons injured (not necessarily in that order). I recommend a minimum of $300,000/$300,000 or $300,000/$500,000 for the liability portion of your policy. 

    Uninsured Motorist: While liability coverage protects the other driver and persons injured in an accident, uninsured motorist ("UM or UM/UIM") coverage protects the people in your vehicle and family members in your household when the accident is the other driver's fault. In Maryland, uninsured motorist coverage is automatically the same as liability coverage, unless a waiver is signed and a reduced amount is requested. This nominal savings on your policy is never a good idea. Never let an insurance company or an agent convince you to save a few dollars a year by reducing your uninsured motorist coverage. That is because uninsured motorist coverage not only protects you in the event the driver of the at-fault vehicle has no insurance, but also supplements coverage in the event that the at fault driver has inadequate insurance. This is known as being underinsured. For example, if you carry $300,000/$500,000 in uninsured motorist coverage, and the driver of the at-fault, vehicle has a $20,000/$40,000 policy (Maryland's minimum), you will have up to an additional $280,000/$460,000 in underinsured coverage for your injuries. While liability coverage protects your assets, uninsured motorist protects you, your family and passengers in your car. I suggest a minimum of $300,000/$300,000 or $300,000/$500,000 for uninsured motorist limits. Never waive UM/UIM. 

    Property Damage: Property damage covers any damage to the other party's vehicle in the event you or the driver of your vehicle is at fault in an accident. This also covers rental vehicle charges and personal property that may be damaged in the accident such as items in the car, a sign or road damage. In today's world, $50,000 vehicles are not uncommon. If you cause an accident which involves multiple vehicles or causes roadway damage, the required minimum of $10,000 in property damage will not make a dent. I recommend that you carry a minimum of $100,000 to cover property damage. 

    Collision: Collision insurance covers the same things as property damage covers, but for your vehicle when you are at fault. Depending on your policy, collision insurance may also cover rental vehicle charges. The amount of collision insurance that you carry should be partially dependant on the value of the vehicles that you are driving. If your vehicle is worth $10,000, it is not necessary to carry a $50,000 collision policy. However, collision insurance also covers damage to any rental vehicle that you may be temporarily renting while on vacation or while your vehicle is being repaired. Therefore, even if your vehicle has low value, I recommend you carry a minimum of $25,000 in property damage, and more if the vehicles that you drive are worth more than $25,000. Never waive collision insurance. 

    Comprehensive: Comprehensive insurance covers your vehicle for damage that is caused when there is not an at fault accident. Striking a deer, vandalism, rocks cracking your windshield are all examples of when comprehensive may cover your vehicle. Comprehensive will also cover your vehicle in the event of a vehicle fire or if your vehicle is stolen. Like collision insurance, comprehensive should be a minimum of $25,000 or more if the value of your vehicle is more than $25,000. If your vehicles have little value you can reduce comprehensive or raise the deductible. 

    Personal Injury Protection and Medical Payment: Personal Injury Protection, often referred to as PIP, covers you for lost wages at 85% of your lost wages and also covers medical bills. The minimum PIP in Maryland is $2,500, which can be waived for the driver and his family but not for minors or non-family member passengers. Never waive PIP. PIP will pay for medical bills and lost wages for any injury that involves your automobile. PIP becomes your primary health insurance until it is exhausted. PIP is especially important if you do not have health insurance or if you?re insured by an HMO which is going to restrict where you received medical treatment. When using PIP, you can go to any doctor without a referral. PIP will also cover you if you are injured while working on your car which is not being driven at the time of injury. PIP also covers lost wages at 85% of actual lost wages. It is not unusual in a serious accident that the only source of income for an individual becomes PIP. Medical coverage, referred to as "MedPay" is a supplement to PIP, after PIP is exhausted. This coverage only pays medical bills. MedPay is not required under Maryland law, but is a nice feature available with some policies. I recommend that you carry a minimum of $7,500 in a combination of PIP and MedPay. Never waive PIP. 

    Umbrella Polices: While the amounts of coverage suggestions in this article are my recommendations for minimums, depending on your financial situation, assets that you need to protect, type of driving that you perform, and family situation, you should consider carrying more insurance than these minimums. Most automobile insurance companies also permit the purchase of an umbrella policy which is also referred to as an excess policy. These insurance policies are on top of the amount of coverage that you purchase in your underlying automobile policy. Most umbrella policies start at $1,000,000. Some, but not all, also contain an uninsured motorist provision. Because umbrella policies require you to carry underlying insurance of a certain limit, and do not even begin coverage until that limit is exhausted, umbrella policies are relatively inexpensive when compared to the underlying policy. Therefore, you should ask you insurance agent or company about the cost of an umbrella. 

    Summary: While I realize that my minimum coverage suggestions can be expensive, skimping on automobile insurance is never a good idea. This year alone we had the unfortunate responsibility to tell at least five clients in wrongful death cases that the at fault driver had no insurance or limited insurance, and the underinsured motorist limits were also inadequate. Rather than reducing coverage, you should consider increasing your deductibles which will lower the cost of these policies. Do not be one of the hundreds of families we have counseled that are first devastated by an automobile accident, and then devastated a second time when they realize they have inadequate coverage. 

        This year, review your policies and make sure you have adequate coverage. If you are unsure if you have adequate coverage, feel free to call our office for a free consultation and review of your policy. 

What do I do Following an Automobile Accident? 

    If you are involved in an automobile accident and someone is hurt, call 911 for assistance. If you are injured, and the paramedics recommend that you go to the hospital, let them take you to the hospital. It is always better to be safe and go to the hospital, whether by ambulance or on your own. This also helps defeats the insurance company's claim that you were not injured. 

   Once you are in the emergency department, be sure to tell the doctor about all of your injury concerns. If an area of your body hurts just after the accident, it will probably hurt much worse over the next few days. If you don?t have your complaints documented during the initial medical treatment, the insurance adjuster handling your bodily injury or medical claim under PIP may deny there is a relationship between your medical problem and the accident. Therefore, be complete when talking to the doctor. When there are obvious signs of injury, such as bruising or lacerations, have someone photograph your injuries. 
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"Never talk to the other driver?s insurance company without talking to your attorney first" 
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        Start writing a journal to document not only what happened and what was said and done at the scene, but also to keep track of how you are feeling and what treatment you are receiving. You must report the accident to your insurance company as soon as possible. However, do not give any recorded statements until you speak with your attorney. Never talk to the other driver?s insurance company without talking to your attorney first. 

        Follow your doctor's recommendations, but if you disagree with your doctor or do not intend to follow his or her recommendations, let the doctor know you are not following his instructions and why. Finally, always talk to an attorney and keep your attorney informed of your progress and any problems or concerns you are having. If you have any questions regarding an accident that you or a loved one has been involved in, you may call our office for a free consultation. 

New Happenings in our Office... 

        Please note that we have moved our Harford County office. Our new office is located at 2304 Rock Spring Road, Forest Hill, Maryland 21050. The phone number is still 410-803-1848. 

        As mentioned in last year's newsletter, Steve purchased the franchise rights to open an Extra Innings Baseball and Softball training facility in Baltimore/Harford County area. After much anticipation, Extra Innings Baltimore opened this past September. Extra Innings has a full pro shop, and offers private and group instructions in hitting, pitching and fielding for baseball and softball and strength and conditioning. The facility is located at 7904 Rossville Boulevard, Baltimore, Maryland 21236. For more information call 410-665-6789. 

        In April, Amy and her husband, Michael welcomed their first child. Madeline Christine Orsi was born on April 2, 2007. Amy and Michael have embraced their new role as parents and are looking forward to their first Christmas with Madeline. 

        Our paralegal, Jen O'Mara, recently got engaged. Jen and her fiancé, Adrian are planning an August 2008 wedding. 

        Finally, we would like to introduce our new full-time secretary, Jennifer Gibbons. Jennifer has replaced Cherie Eyler who left at the end of October to continue her education. Cherie anticipates starting nursing school in the fall of 2008. We welcome Jennifer and wish Cherie the best of luck.