By David Peel
We can agree that cost of everything have gone up a lot recently. Just think for a moment how much they’ve gone up since 1977.
The reason 1977 is significant—other than being the year Elvis died—is that is when Tennessee adopted a $25,000 per person/$50,000 per accident, minimum insurance limit for the state.
In 1977, a new car was about $5000, gas was .65 cents a gallon, and tuition to Harvard was $4,100. Here’s a good variety of the prices on the car lot around that time:
1975: New, Maverick, $3,625. Used, Mustang Fastback, $2,749.
1976: New, Chrysler Cordoba, $4,895. Used, Dodge Colt, $2,295.
1977: New, Mercury Bobcat, $3,588. Used, Lincoln Continental, $5,400.
1978: New, Honda Civic, $4,299. Used, Buick Regal, $1,300.
1979: New, Datsun 280ZX, $10,654. Used, Jeep CJ5, $4,995.
Auto insurance limits are far too low for uninsured motorist coverage. It is also known as under insured motorist coverage and can refer to unknown motorist coverage. In summary, UM only protects the occupants of your vehicle and members of your household, who are injured by an automobile in any form.
That means your four-year-old who gets run over by a drunk driver in stolen car on the street, and it could include your wife riding home with a friend who turned out not to have insurance and hits a tree.
So you get to pick the amount of insurance that is at least possible to recover in the event another driver injures your family.
So what’s your choice? $100,000 or a tuna casserole?
Buy more UM!
Peel seeks justice for those injured in tractor trailer and car accidents, medical malpractice, and disability. He often addresses churches, clubs and groups without charge. Peel may be reached through PeelLawFirm.
