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What do lawyers and insurance agents wish you knew?

By Ken Gibson on June 23, 2016

Personal injury attorneys and insurance agents have some common bonds. We both believe it’s important for people to have the right amount of auto insurance coverage for them – not too much, but not too little.

We at GibsonSingleton Virginia Injury Attorneys sat down with Gloucester insurance agent Jay McGlohn, Vice President of Gloucester Southside Agency, a Towne Insurance Agency, to get his take on “MedPay” and related auto insurance questions:

GS: Jay, what do you generally tell clients about having a “MedPay” benefit on their auto insurance policy?

JM: Everyone we provide an auto quote to is encouraged to include “MedPay” on their auto policy. It is a coverage that is available no matter who is at fault in a wreck, and it addresses medical needs of each party involved.

Also, if you have multiple cars on your policy, most insurance companies allow the number of cars times the per vehicle limit to be the “MedPay” limit. Example: the “MedPay limit on a policy is $5,000. If the insured has three cars on the policy, the limit increases to $15,000 per person.

GS: Speaking of liability limits, how do you recommend that people determine the proper liability limits for their auto insurance policies?

JM: I get asked almost every day, “How much insurance should I get?” My response is that the person purchasing the insurance has to be comfortable with the limits chosen.

Next, we usually talk about the cost of property (cars, utility equipment, etc.), and how much it could cost to replace. Most people soon realize that an at-fault accident involving more than two vehicles can exceed repair costs of $50,000 quickly.

Many do not realize that when utility equipment is involved, the damaged equipment is just a small part of the cost. The labor involved to restore service and repair or replace the damaged equipment is also factored.

Property damage has a finite cost: a car costs X number of dollars, no more, no less. The conversation then changes to the cost of bodily injury. We all know that medical expenses are high. What is the cost to repair a human?

I like to see auto insurance policy limits no less than $100,000 per person/ $300,000 per accident for bodily injury, and $100,000 for property damage. However, it’s important to note that increasing your liability limits to $250,000 per person/ $500,000 per accident will not increase your premium significantly, and it will provide much more protection.

I also recommend an umbrella policy in case the insured has the misfortune of causing a catastrophic accident.