Tag: DKY Law Firm

When we get behind the wheel, we assume that other drivers on the road are following the same safety guidelines, including having the necessary insurance coverage. However, that assumption may be dangerously wrong. Unfortunately, the number of uninsured drivers and underinsured drivers is on the rise, leaving responsible drivers exposed to significant financial risks.

In the unfortunate event of an auto accident, the financial aftermath can be devastating, especially if the at-fault driver is inadequately insured or worse, not insured at all. Understanding how to shield yourself from uninsured drivers is crucial for safeguarding your finances and ensuring peace of mind. Thankfully, there are effective measures to protect yourself from these risks, with one of the most potent being the acquisition of uninsured and underinsured motorist (UM/UIM) coverage.

The Growing Problem: Uninsured Drivers and Underinsured Drivers

The issue of auto accidents involving uninsured and underinsured drivers is a growing concern across the United States. It’s important for all drivers to be aware of this trend and take steps to protect themselves.

Across the United States, the number of uninsured drivers is increasing. According to the Insurance Information Institute, “a 2023 report by the Insurance Research Council found that 14% of motorists, or about one in seven drivers were uninsured.”

Even more troubling – the number of underinsured drivers with insurance but insufficient coverage limits to pay for serious auto accident injuries or damage also continues to rise. According to a 2023 report from the Insurance Research Council, 15.7% of drivers in the U.S. have insufficient coverage. Several factors contribute to this alarming trend, including rising insurance premiums, economic challenges, and lapses in coverage.

Liability Limits Fall Short in Many States

In many states, including Pennsylvania, the liability limits required by law are simply too low to cover all the costs associated with a serious auto accident. According to the Pennsylvania Department of Transportation, all motor vehicles subject to registration must have liability insurance. You are complying if you have liability insurance in PA in the following amounts:

  • $15,000 for injury or death of one person in an accident
  • $30,000 for injury or death of more than one person in an accident
  • $5,000 for damage to the property of another person

Those amounts are deficient by today’s standards, leaving thousands of Pennsylvanians driving without adequate coverage. This can be devastating in the event of a car accident.

Uninsured Motorist (UM) &Underinsured Motorist (UIM) Coverage

Relying on other drivers to carry adequate coverage is insufficient to protect yourself financially. This is where Uninsured Motorist (UM) coverage and Underinsured Motorist (UIM) coverage become essential.

Uninsured Motorist (UM) Coverage protects you in cases where you are hit by a driver who has no insurance at all. This could be a hit-and-run accident or an accident with a driver who neglected to purchase insurance.

Underinsured Motorist (UIM) Coverage comes into play when the at-fault driver has some insurance, but their policy limits are too low to cover the full extent of your losses. For example, if you were involved in an accident where the other driver had the state minimum coverage of $15,000 and your injuries and damages totaled $50,000, UIM coverage would help bridge that gap.

Together, UM and UIM coverage are designed to protect you in situations where the responsible party either has insufficient liability coverage or no coverage at all. These coverages can be a financial lifeline after a serious car accident.

Why Minimum Liability Limits Are Insufficient

It’s important for many drivers to realize that the minimum liability limits mandated by their state may not be sufficient to cover the costs associated with a severe accident. Costs associated with medical expenses, vehicle repairs, lost wages, and pain and suffering can quickly accumulate. If the at-fault driver’s liability coverage is insufficient, these costs may end up on your plate.

Having adequate UM/UIM coverage is not just a precaution, it’s a proactive step towards shielding yourself from these financial risks.

Tips for Checking Your Insurance Policy

Reviewing your auto insurance policy carefully is essential to ensure you’re adequately protected. Here are a few tips for checking your coverage:

  1. Review Your Current Liability Limits: The first step is to examine your existing coverage closely. What are your current liability limits for bodily injury and property damage?
  2. Check for Uninsured and Underinsured Motorist Coverage: While UM/UIM coverage is required in some states, it may be optional in others. If you’re not sure whether you have this coverage, now is the time to check your policy documents. If you don’t have UM/UIM coverage, consider adding it.
  3. Assess Your Coverage Limits: Just like liability coverage, your UM/UIM coverage comes with limits. Evaluate whether your current UM/UIM limits are high enough to protect you in the event of a serious accident.
  4. Consider Additional Coverage: In addition to UM and UIM, you should review your First Party Benefits also known as Personal Injury Protection (PIP) which includes medical benefits, income loss benefits, accidental death benefits, funeral benefits, and provide coverage regardless of fault .

Speak with Your Insurance Agent

Insurance policies can be complex, and it’s easy to overlook important details. That’s why speaking with your insurance agent is an excellent idea to ensure you’re adequately covered. Ask your agent to explain the details of your UM and UIM coverage and inquire about the cost of increasing your coverage limits. Many agents can provide personalized advice based on your driving habits, risk factors, and budget. Ask questions or request a policy review to ensure you’re fully protected.

Shopping Around for Better Rates

If you find that your current insurance policy doesn’t offer adequate UM/UIM coverage or if you’re concerned about the cost, it may be time to shop around for a better rate. The insurance market is competitive, and many companies offer discounts or lower premiums for drivers who bundle policies, have a clean driving record, or take advantage of safety features like anti-theft devices or telematics programs.

Be sure to compare quotes from multiple insurers and review their coverage options to find a policy that offers the protection you need at a price you can afford.

Protect Yourself from Uninsured Drivers

With the rise of uninsured and underinsured drivers, protecting yourself on the road is more important than ever. Minimum liability limits in many states are insufficient to cover the full cost of damages in a serious auto accident, leaving you financially vulnerable if the at-fault driver lacks sufficient coverage.

By purchasing Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverage, reviewing your policy, and speaking with your insurance agent, you can ensure you’re adequately protected. Taking the time to assess your coverage now can save you from potentially devastating financial consequences down the road.

Contact Distasio, Kowalski & Yelen if You’ve Been Injured in an Auto Accident

The DKY Auto Accident Firm can ensure you get the best representation and compensation for your injuries in the event of a serious accident. DKY Law’s experienced car and truck accident attorneys are available to meet with you to discuss the best course of action after an auto accident.

 

Michael J. Kowalski, a partner with DKY Law Firm, has been representing individuals and their families in personal injury matters for 30 years. These include cases involving medical malpractice, medical errors, birth injuries, and auto and truck accidents, among others. If you are injured, you want Attorney Kowalski and the DKY Law Firm fighting for you. Contact Attorney Kowalski today

 

Jeffrey A. Yelen, a partner with DKY Law firm, has been representing clients with a broad range of legal issues for over 25 years.  These include cases involving Elder Law, Personal Injury, Medical Malpractice, Workers Compensation, Wills, Trust & Estates and Powers of Attorney and the general practice of law.  If you are injured, you want Attorney Yelen and the DKY Law Firm fighting for you. Contact Attorney Yelen today.

 

As our parents age, many of us are faced with the question of what to do with their assets. Should we encourage them to gift their house or other assets to us, their children? Should we make bank accounts joint with our parents? These are important questions to consider. It’s essential to seek the opinion of an estate planning attorney or elder law attorney before making any decisions. In this blog, we’ll explore the pros and cons of gifting assets and making bank accounts joint with children and explain why seeking professional advice from an experienced probate lawyer is crucial.

The Importance of Estate Planning and Elder Law

Elder law and estate planning are essential for ensuring your assets are protected and allocated in accordance with your wishes. Estate planning involves designing a plan to distribute your assets after your death, while elder law addresses the legal and financial issues that arise as we age. Estate attorneys and elder care lawyers can guide you in creating an in-depth plan that concentrates on your precise needs and goals. Furthermore, they can also advise you on the most effective ways to protect your assets and fulfill your wishes.

The Risks of Gifting Assets to Children

Many people consider gifting assets, such as their homes, to their children to avoid probate and reduce estate taxes. However, this strategy has significant risks. First, gifting assets to children means you no longer have control over those assets. Once the gift is made, it belongs to your children, who can do whatever they want. This can be problematic if your children are not financially responsible, get divorced, or face other legal issues. Additionally, gifting assets can have significant tax implications. If the value of the gift exceeds the annual gift tax exclusion, you may be subject to gift taxes. Consequently, if your children sell the gifted assets, they may be subject to capital gains taxes. 

The Risks of Joint Bank Accounts

Another common strategy for avoiding probate is to make bank accounts joint with children. While this may seem simple and convenient, it can also have significant risks. First, making a bank account joint with your children means they have equal access to the funds in that account. This can be problematic if your children are not financially responsible or face legal issues.

Additionally, making a bank account joint with your children can have tax implications. If the account earns interest, your children may be responsible for paying taxes on that interest, even if they do not withdraw the funds. In Pennsylvania, joint bank accounts are presumed to be right of survivorship, meaning that only those listed on the bank account with you will inherit the account. In other words, they will not pass according to your will. 

The Benefits of Seeking Professional Advice from an Estate Planning Attorney

Given the risks associated with gifting assets and making bank accounts joint with children, seeking professional advice from an estate planning attorney is essential. An experienced estate lawyer can help you better grasp the potential consequences of gifting assets and making bank accounts joint with children. Moreover, they can provide guidance on alternative strategies for safeguarding your assets and ensuring that your wishes are carried out. 

Alternative Strategies for Protecting Assets

There are several alternative strategies for protecting your assets that do not involve gifting assets or making bank accounts joint with children. These include:

  • Trusts: A trust is a legal arrangement in which a trustee holds and manages assets on behalf of a beneficiary. Trusts can be revocable or irrevocable. They can protect assets from creditors, avoid probate, and reduce estate taxes. A trust attorney can provide guidance.
  • Life Estate Deeds: A life estate deed is a legal document that permits you to transfer ownership of your property to your children while retaining the right to live in the property for the rest of your life. This approach can help you avoid probate and reduce estate taxes.
  • Long-Term Care Insurance: Long-term care insurance can help preserve your assets if you require long-term care. This type of insurance may cover the expenses of nursing home care, assisted living, and in-home care. 

The Role of Estate Lawyers and Elder Law Attorneys

Estate planning lawyers and elder law attorneys play a vital role in assisting individuals and families interested in protecting their assets and ensure that their wishes are carried out. In particular, they can provide guidance on the best strategies for protecting assets, reducing inheritance and estate taxes, and accomplishing your estate goals.

Estate planning and elder law lawyers can also help you create a comprehensive plan that addresses your specific needs and goals. They can provide counsel on the best ways to protect your assets and ensure that your wishes are carried out. 

Conclusion

As our parents age, it’s natural to want to safeguard their assets and ensure that their wishes are carried out. However, gifting assets and making bank accounts joint with children can have significant risks and tax implications. It’s essential to seek skillful advice from an estate planning attorney before making any decisions. To clarify, an elder care lawyer can help you understand the potential outcome of gifting assets and making bank accounts joint with children and provide guidance on alternative strategies for protecting your assets.

By working with an experienced trust attorney or elder lawyer, you can create a comprehensive plan that addresses your specific wishes. One that ensures that your assets are protected and distributed according to your wishes.

Contact a DKY Elder Law Attorney Near Me

Contact The Distasio, Kowalski & Yelen Law Firm (DKY Law) if you are looking for an “estate attorney near me” or for a Pennsylvania estate attorney or Wilkes-Barre estate lawyer.

Tap to learn more about Wills, Trusts, and Estate Planning.

 

Jeffrey A. Yelen, a partner with DKY Law Firm, is an Elder Law Attorney who brings 25 years of estate planning, probate and estate litigation experience to the clients he serves. He is head of the firm’s Elder Law and Estate Services division and is highly experienced in Wills, Estates, and Trusts.  When you are searching for an Elder Law Lawyer, Attorney Yelen can provide the skilled legal representation you and your family need. Contact Attorney Yelen.