Car insurance is one cost you shouldn't skimp on during the recession. | Image Source: CarInsuranceGuide.com

In times of reduced cash flow, people everywhere are looking to save money. It makes sense. Coupon clipping, bargain shopping, and sale pricing are all great and economical ways to save a little extra cash. But some individuals have thought dangerously outside the box by reducing their car insurance coverage, according to a new study by analytics firm, Quality Planning.

The study found that now more than ever, people are reducing their car insurance coverage in light of tough times, some drivers opting for liability-only and little to no uninsured motorist coverage, depending on state law requirements.

Just last year, 10 percent of motorists reduced their car insurance coverage to just liability insurance. This saved drivers just $229 a year on average. These drastic measures to save money may work in the interim, but the future risk outweighs the potential benefits of saving money today.

Save money today, but gamble your future? – Don’t risk it.

Here in the state of California, the car insurance minimums require liability coverage at the very least. The minimum liability coverage an individual must carry in the state of California is $15,000 of coverage per individual, and $30,000 per car accident.

The state of California does not require uninsured motorist coverage. While it may be tempting to save the few extra dollars by opting out of the “optional” coverage, don’t opt out of this important and relatively inexpensive insurance coverage option.

Keep your uninsured motorist coverage, and consider raising limits.

One of the most valuable “investments” you can make is opting into uninsured motorist coverage. You may even wish to raise your limits. Why?

• Uninsured motorist coverage is extremely necessary in the event you are involved in an injury car accident with another driver who has little to no car insurance. If you must ever face medical bills resulting from an injury accident, your uninsured motorist coverage will likely foot the bill, alleviating you of the financial burden of resulting from your accident.
• Uninsured motorist coverage will cover you in the event you get into an accident with a corporate entity. For example, if you get into a car accident with a taxi cab, the cab company may not be liable for the accident since cab drivers are often independent contractors who carry minimum insurance limits themselves. Take in consideration the recent developments in San Diego’s Stingaree taxi cab accident.

Injury car accident recovery for drivers without uninsured motorist coverage

If you have been injured in a car accident without uninsured motorist coverage, you still may be able to receive compensation for your injuries. The laws surrounding your insurance claim are usually complex in nature, so it’s important to call a qualified San Diego personal injury attorney right away in order to preserve your legal rights.

Call the Law Offices of Michael Pines, APC, car accident attorneys, at 1-800-655-6585 or contact us online for your free and confidential legal evaluation.

About Michael Pines

Michael Pines is a former insurance company attorney who specializes in car accident injury. While he was an insurance attorney, he learned from behind the scenes on how insurance companies work and how they decided to pay injured people. Now that he works against insurance companies, Michael's inside knowledge has resulted in significant benefits to his clients injured in car accidents.

The San Diego taxi cab accident that occurred at the Stingaree nightclub over Valentine’s Day weekend was every pedestrian’s nightmare – one that could get even worse for victims now seeking compensation for their injuries.

The February 13th injury accident left 36 pedestrians in need of medical care, including one woman who’s leg almost severed. Now, the public is left asking: Who will compensate the victims?

Collecting damages: the fine print

Three conditions must be met before a plaintiff can collect damages in an injury lawsuit.  First, the accident must be proved to be another person’s fault; second, someone involved in that accident must have suffered an injury; and third, there must be an available party with the means to pay awarded damages.

In the Stingaree accident case, there are known victims and a responsible party. But the details of who will compensate the victims can get complicated—here’s why.

If the Emerald Cab Company holds an independent contractor relationship with the cab driver involved in the crash, they may not be responsible for pedestrian injuries incurred in the accident due to this working relationship.

Therefore, the injured will most likely turn to the cab driver for compensation.

If that’s the case, the cab driver’s car insurance will likely foot the bill. If so, let’s take a look at the cab driver’s possible insurance coverage and how it may affect the overall compensation for the injured group.

Even if the cab driver company carried the MTS taxi cab minimum of $300,000 per accident, there are 37 injured pedestrians seeking compensation – which runs a high bill for very little coverage.

Therefore, there is no guarantee that the Stingaree victims will receive more than a meager amount to help cover medical costs, depending on how much insurance coverage the cab driver in fact carries.

In our experience, however, most cab companies and cab drivers carry the California minimum uninsured coverage—so if the injured are looking for a multi-million dollar settlement, they may be in for a disheartening surprise.

Protect yourself: cover loses with uninsured motorist coverage

Contact your auto insurance company to discuss increasing uninsured motorist insurance coverage for yourself.  This type of coverage will help cover damages in the event of an accident involving an uninsured or under-insured driver.

Those injured in the Stingaree taxi cab accident may turn to their own insurance company to collect for losses, depending on their own coverage. That’s why it’s so important to take a look at this case, consider the risk, and make the necessary changes for your own lifestyle.

If you or someone you know has suffered losses or injury in a San Diego car accident, contact our experienced personal injury attorneys at the Law Offices of Michael Pines. Michael Pines, founder, is an ex-insurance company lawyer and dedicated advocate for those seeking due compensation from insurance companies.

About Michael Pines

Michael Pines is a former insurance company attorney who specializes in car accident injury. While he was an insurance attorney, he learned from behind the scenes on how insurance companies work and how they decided to pay injured people. Now that he works against insurance companies, Michael's inside knowledge has resulted in significant benefits to his clients injured in car accidents.