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Uninsured / Underinsured Motorist Coverage (UM / UIM) – What is It?
In 2011, a study done by the Insurance Research Council found that 1 in 7 drivers in the U.S. are uninsured. Of those who do carry liability insurance, many are underinsured. Please understand that many Ohio drivers have state minimum limits of $12,500.00 per person and $25,000 per accident. Usually, that amount of coverage will barely cover your emergency room visit.
There are a variety of reasons people may choose to go uninsured or to carry low insurance limits, but the primary reason is generally to avoid paying monthly premiums on an insurance policy. Regardless of the severity of a car accident, the driver at fault may be accountable for repairs, medical bills, liability costs and other expenses. But when they are not insured, it is not likely that the at–fault driver will actually pay for your losses.
An uninsured motorist is a motorist who does not have any automobile insurance at all. An underinsured motorist is a motorist who carries automobile insurance but with limits that are lower than your underinsured motorist coverage limits. For example, if you choose to carry underinsured motorist coverage of $100,000 per person, and you are in an accident with a person who has liability insurance with policy limits of $25,000 per person, you will have an underinsured motorist claim of up to $75,000.00 with your own automobile insurance company.
How to Protect Yourself
Adding uninsured / underinsured motorist coverage to your policy can pay for injuries sustained by you, your passengers, and sometimes even your property if you are in a car accident in which an uninsured or underinsured driver is at fault. Paying monthly car insurance premiums allows you to pay a manageable amount from month to month so you won’t have to pay an unmanageable sum later. Adding uninsured / underinsured motorist coverage helps you protect yourself if you are injured in an accident caused by an uninsured / underinsured driver.
When you have UM / UIM coverage, you can receive money for the damages and injuries you, your passengers, and all the members of your family who reside in your household acquire in the event of a car accident if the driver at fault does not have liability insurance.
How Much Uninsured Motorist Coverage is enough?
This question varies for everyone, but in most cases, policyholders carry uninsured motorist coverage equal to their bodily injury liability limit. Some states, such as Ohio, do not require that carriers provide uninsured motorist coverage. If your agent does not offer uninsured / underinsured motorist coverage, you must ask for it. I cannot over emphasize how important it is that you have this coverage in your auto policies.
Many insurance companies prohibit coverage at a higher amount than the bodily injury liability limit. I recommend that everyone should carry uninsured / underinsured motorist coverage of at least $100,000 per person / $300,000 per accident.
What Type of Losses are Covered?
Uninsured motorist coverage is in place to compensate you for your economic damages and non – economic damages when you have a legal claim against an uninsured or underinsured driver. Medical expenses, loss of income or earnings and out-of-pocket expenses may be covered, as well as non- economic damages such as pain and suffering, and the inability to do your normal daily activities.
Uninsured Drivers and Legal Risks
Motorists who cannot provide proof of insurance in the event of a traffic stop may face risks such as a suspended or confiscated license. Also, inactive insurance policies can make it difficult for drivers to get new vehicle tags or a new license plate when necessary, and they may even have their plates or registration suspended. These measures are in place to encourage all drivers to invest in the proper auto insurance.
Hiring an Uninsured / Underinsured Motorist Attorney
Understanding insurance policies can be difficult. An uninsured / underinsured motorist attorney can look into your policy’s bodily injury and property damage coverage when you are faced with a claim that exceeds the limit of your uninsured / underinsured motorist coverage and clearly explain what is covered through your policy and what is not. An experienced personal injury attorney will also be able to help you recover the compensation you are entitled to for medical bills, automobile repairs, lost wages, out of pocket expenses, and any other general damages incurred as a result of an auto accident.
In 2011, a study done by the Insurance Research Council found that 1 in 7 drivers in the U.S. are uninsured. Of those who do carry liability insurance, many are underinsured. Please understand that many Ohio drivers have state minimum limits of $12,500.00 per person and $25,000 per accident. Usually, that amount of coverage will barely cover your emergency room visit.
There are a variety of reasons people may choose to go uninsured or to carry low insurance limits, but the primary reason is generally to avoid paying monthly premiums on an insurance policy. Regardless of the severity of a car accident, the driver at fault may be accountable for repairs, medical bills, liability costs and other expenses. But when they are not insured, it is not likely that the at–fault driver will actually pay for your losses.
An uninsured motorist is a motorist who does not have any automobile insurance at all. An underinsured motorist is a motorist who carries automobile insurance but with limits that are lower than your underinsured motorist coverage limits. For example, if you choose to carry underinsured motorist coverage of $100,000 per person, and you are in an accident with a person who has liability insurance with policy limits of $25,000 per person, you will have an underinsured motorist claim of up to $75,000.00 with your own automobile insurance company.
How to Protect Yourself
Adding uninsured / underinsured motorist coverage to your policy can pay for injuries sustained by you, your passengers, and sometimes even your property if you are in a car accident in which an uninsured or underinsured driver is at fault. Paying monthly car insurance premiums allows you to pay a manageable amount from month to month so you won’t have to pay an unmanageable sum later. Adding uninsured / underinsured motorist coverage helps you protect yourself if you are injured in an accident caused by an uninsured / underinsured driver.
When you have UM / UIM coverage, you can receive money for the damages and injuries you, your passengers, and all the members of your family who reside in your household acquire in the event of a car accident if the driver at fault does not have liability insurance.
How Much Uninsured Motorist Coverage is enough?
This question varies for everyone, but in most cases, policyholders carry uninsured motorist coverage equal to their bodily injury liability limit. Some states, such as Ohio, do not require that carriers provide uninsured motorist coverage. If your agent does not offer uninsured / underinsured motorist coverage, you must ask for it. I cannot over emphasize how important it is that you have this coverage in your auto policies.
Many insurance companies prohibit coverage at a higher amount than the bodily injury liability limit. I recommend that everyone should carry uninsured / underinsured motorist coverage of at least $100,000 per person / $300,000 per accident.
What Type of Losses are Covered?
Uninsured motorist coverage is in place to compensate you for your economic damages and non – economic damages when you have a legal claim against an uninsured or underinsured driver. Medical expenses, loss of income or earnings and out-of-pocket expenses may be covered, as well as non- economic damages such as pain and suffering, and the inability to do your normal daily activities.
Uninsured Drivers and Legal Risks
Motorists who cannot provide proof of insurance in the event of a traffic stop may face risks such as a suspended or confiscated license. Also, inactive insurance policies can make it difficult for drivers to get new vehicle tags or a new license plate when necessary, and they may even have their plates or registration suspended. These measures are in place to encourage all drivers to invest in the proper auto insurance.
Hiring an Uninsured / Underinsured Motorist Attorney
Understanding insurance policies can be difficult. An uninsured / underinsured motorist attorney can look into your policy’s bodily injury and property damage coverage when you are faced with a claim that exceeds the limit of your uninsured / underinsured motorist coverage and clearly explain what is covered through your policy and what is not. An experienced personal injury attorney will also be able to help you recover the compensation you are entitled to for medical bills, automobile repairs, lost wages, out of pocket expenses, and any other general damages incurred as a result of an auto accident.
