First Party Medical Payments Coverage
We recommend purchase of medical payment benefits as high as you can afford and no less than $25,000.00. The benefits of this coverage are many:
It is affordable: When researching the cost of medical payments coverage you will learn that it is affordable. We bet the premium for medical payments coverage (that covers humans) is disproportionately more affordable than collision coverage (that covers inanimate object). We submit protecting humans is more important than protecting the car.
Covers 100%: Medical payments coverage pays 100% of the health care bills up to the limit purchased. Some people decide not to buy medical payments rationalizing they have health insurance to pay medical bills. Here is what I tell them: Health insurance usually pays a percentage of collision related medical expenses and depending on the health plan, there may be a high deductable and depending on the financial circumstances at the time of the collision, you may not be able to afford the deductable and the co-pay. Medical payments coverage usually does not have a deductable and pays 100% of collision related medical expenses up to the limits purchased.
Covers everyone in your car: If you are a family like ours, we often car-pool other hockey and soccer kids around this great state. First party medical payments coverage is per person coverage that provides funds to pay medical bills for each occupant in your vehicle. Example: You are transporting 1/3 of the team to the game and inattentive driver blows a red light and T-bones your car. You and the kids are hurt, taken by ambulance to the hospital. The medical payments coverage on the car would be available for each occupant of your car (mini van).
Supplement your liability coverage: Sometimes we make mistakes, like falling asleep at the wheel or driving too fast and harming the occupants of our vehicle. First party medical payments coverage is available to pay medical expenses even when you are at fault for the harm that befell the occupants of your vehicle.
Portable: Most of the time, medical payments coverage follows you and your loved ones wherever you go, even when riding in another’s car. Example, your children are transported to a hockey game by another parent and an inattentive driver blows a red light and T-bones the vehicle your kid occupies. The medical payment coverage on the car your kid occupies would be first (primary). If that policy did not have medical payment coverage or if that coverage was not enough to pay the bills, the med pay you purchased for your car would then kick in to cover your kid.
First Party Uninsured/Underinsured Motorist Coverage (UM/UIM)
We recommend purchase of UM/UIM as high as you can afford and no less than 100/300. Unfortunately, the likelihood that an Alaskan will be hit by a driver that lacks insurance or doesn’t have enough insurance is high. Sadly, those financially irresponsible drivers are careless in several aspects of their life. We have seen the worst financially irresponsible drivers to be drunk, on drugs, young distracted and created much destruction to human life and families. You cannot trust that every driver on the highway has insurance, because a large percentage does not and when they hurt people, they hurt them bad. There is no point in suing these losers as they have no assets and there is a large line of other people/ entities that financially trusted them before you to get their personal assets.
Lesson: the only person that will take care of you and your family is you – do it well. Second assess your family needs.