BMW Insurance, Sufficient Coverage

Car Tips | September 7th, 2008 by 3

In the past, many of our readers have emailed us questions regarding insurance policies for their new or used BMW. While we are not experts …

In the past, many of our readers have emailed us questions regarding insurance policies for their new or used BMW. While we are not experts in this field, we looked up to people that have more knowledge when it comes to insurance claims, policies and pricing. Along with this, we are offering a free tool that allows you to compare auto insurance for the best rate available.

Today, in a first series of articles that will be available here, we have an interesting post written by Cole.

Performance, luxury and style make up a few key features your will find in a BMW. With cars such as these, you must know how to shield it with the proper insurance protection from driver’s with less than sufficient coverage. There are many underinsured motorists that you must take into consideration when choosing the best coverage.

Many drivers with older or inexpensive automobiles will only purchase the state minimum coverage for their car without placing much thought into what may happen if they become at-fault for crashing into a much more expensive automobile. Just a fender bender with a later model BMW may exceed the other driver’s state minimum coverage limits. This could result in the driver of the BMW being left to cover the unpaid property damage or having to take the at-fault driver to court.

However, taking someone to court will not always result the way you hope it would. The driver that hit you may just end up claiming bankruptcy or not even show up to court.

Underinsured Motorist coverage (UMI) will help pay for damages when the other driver doesn’t have enough coverage to pay the full amount needed. This coverage is considered “excess coverage” which can go above and beyond what is paid by the other driver’s auto insurer. If damages come out to $40,000 and the other driver’s insurer only pays $15,000, getting the remaining $25,000 can become very difficult, as mentioned above.

If you have Underinsured Motorist coverage with a limit set at $30,000, you will be entitled to the $25,000 payout needed from your policy. A good way to determine about how much you should set for your UMI limits is by taking the value of your car and subtracting your state’s liability limit to see what’s remaining. You can find the liability limits for your state as well as compare insurance quotes by clicking here.

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  • Donny

    The most important portion of your insurance, is NOT protecting your BMW, it IS protecting your pocketbook, assets and your future earnings. If you have the state liability minimum, and you have the means to own a BMW, you’re not properly insured.

    Get informed about this subject … don’t discover after it’s too late, that you’re improperly insured. Find a solid insurance agent … and try to find balance between price and coverage. And if (when) that unimaginable event happens, you’ll be thanking yourself that you were properly covered.

  • Steve

    What a great lesson! Thank you.

  • http://www.bmwblog.com Horatiu B.

    @Donny: Thank you Donny. Good point. I honestly was fortunate to have a good insurance agent and I really never spent much time researching this, but I know he has me pretty well insured. I am also a firm believer that sometimes it’s better to stick with bigger, older companies, rather than saving a few dollars and having to deal with small “shops”. But that’s just me.

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