Jill: Hello everyone! Welcome to another episode of Coffee with the Counselors. I'm Jill Bollwerk.
Andy: And I'm Andy Pickler, and we are the attorneys at Bollwerk and Associates.
Jill: It's been a while since our last episode, and there's a good reason for that.
Andy: Yes, my wife and I are happy to announce that we welcomed our second daughter into the world!
Today's Topic: Understanding Your Car Insurance
Jill: Today we're starting a four-part series on understanding your car insurance policy. We'll break this down into separate episodes covering:
1. Liability Insurance (Today's Topic)
2. Medical Payments Coverage
3. Uninsured Motorist Coverage
4. Underinsured Motorist Coverage
What Is Liability Insurance?
Andy: Liability insurance is mandatory in Missouri. Everyone needs to have at least the minimum coverage. This insurance covers you if you're at fault in an accident and you injure someone.
Jill: Let's clarify what liability insurance is NOT - it's not what people call "full coverage." It only covers you for your fault and doesn't cover anything that happens to you. If you want your vehicle damage covered in an accident where you're at fault, you need to purchase collision coverage on top of liability coverage.
Understanding Missouri's Minimum Limits
Andy: In Missouri, you must have minimum limits of what we call "25/50," which means:
- $25,000 per individual
- $50,000 per accident
Jill: So if one person gets hurt, the maximum they can receive is $25,000?
Andy: Correct. And if multiple people get hurt, they share in the $50,000, but no individual can receive more than $25,000.
Important Considerations
Jill: It's not always a good idea to only carry minimum limits. You really have to consider what you have to lose if you have a serious accident. For example, if you seriously injure somebody and you only have $25,000 of coverage, but you have a nice house and a good job, you might be exposing yourself to excess liability above and beyond your insurance policy.
Multiple Vehicle Coverage
Jill: Andy, how does it work if you have multiple cars and each one has a $25,000 policy?
Andy: The insurance follows the car. If you have multiple cars and one has a 25/50 minimum, and you're at fault in an accident while driving that car, that 25/50 coverage applies.
When driving someone else's car, typically their car insurance is the primary coverage. Sometimes your car insurance might cover secondarily or do what's called "pro-rata sharing," but you'll need someone to review your policy to determine this. Generally, liability insurance follows the vehicle.
Jill: To summarize, liability insurance is:
- Mandatory in Missouri
- Covers you for your acts of negligence
- Covers injuries you cause to others
- Does not cover damage to your own vehicle
Jill: Next time, we'll be talking about medical payments coverage. Anything to add, Andy?
Andy: No, but it's good to be back!
Jill: Yes, and Andy's even getting a slight amount of sleep at night, so that's great!
Both: Thanks everyone, we'll see you next episode!