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Uninsured-Motorist and Underinsured-Motorist Coverages: They're Not Only Cheap, They Cover You Almost Anywhere.
Posted by: David Abney
July 26, 2010

Uninsured-motorist and underinsured-motorist coverages are some of the insurance industry's best-kept secrets. They're cheap and cover you and your loved ones almost anywhere. We encourage all drivers to ask their insurance agents about making sure that they have ample uninsured and underinsured motorist coverages.

But first you need to understand what the products are, why you should buy them, and what they cover. First, uninsured-motorist coverage provides coverage for you, your family members who live with you, and your motor vehicle's passengers. It covers medical expenses, lost wages, and pain and suffering that may result from a motor-vehicle collision. The trigger for uninsured-motorist coverage is a collision with a driver who has no liability insurance. Since about one-third of all drivers have no liability insurance, uninsured-motorist coverage is an important way to protect you and your loved ones.

Second, underinsured-motorist coverage applies when you are in a crash with a driver who has insurance, but not enough to cover your bodily injuries. For instance, suppose a driver who only has $15,000 in liability-insurance coverage causes a crash that breaks your arm. You have $30,000 in medical bills and other bodily injuries. The other driver's liability insurance will only cover $15,000 of your damages. In a case like that, the other driver is "underinsured," and you have the right to recover $15,000 from your own underinsured-motorist insurance coverage-if you had the sense to buy it.

Uninsured-motorist and underinsured-motorist coverages are far cheaper than liability-insurance coverage. If you or your loved ones use either of those coverages just once, you will probably receive more money from them than you would pay in a lifetime of premiums to buy them. Moreover, if you did not cause the collision, the fact that you received underinsured-motorist or underinsured-motorist benefits to help pay for your bodily injuries will not make your own insurance premium go up.

Finally, most people do not know that their uninsured-motorist and underinsured-motorist coverages follow them almost everywhere. Those coverages protect you when you are riding in someone else's motor vehicle, when you are walking, when you are riding a bicycle, or even when you are sitting on your porch. In fact, suppose you are sleeping in your bed when an uninsured truck driver negligently loses control of his truck and crashes into your bedroom, breaking your arm. Since that crash was motor-vehicle related, your uninsured-motorist coverage will cover your bodily injuries. (All of that is true if the negligent driver was underinsured, and you have underinsured-motorist coverage.)

The moral of the story is simple. Your insurance agent should offer you the chance to buy uninsured-motorist and underinsured-motorist coverages. If not, ask for them. They are far less expensive than liability insurance coverage, so buy as much as you can reasonably afford. Use one of these coverages just one time, and you have probably recovered more than a lifetime of their premiums. And never forget that the coverages apply almost everywhere. (They usually won't cover you outside the United States, unless you buy special coverage for foreign travel, but that's a different story.)

Protect yourself and your loved ones by your own safe driving. But you also need to protect yourself and your loved ones by buying insurance to safeguard against drivers who have no liability insurance-or who do not have enough to cover the harm they may cause to others. Finally, if you are in a serious accident, consult lawyers with the experience and knowledge to help you, like the lawyers at Knapp & Roberts.

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Underinsured & Uninsured Insurance For Your Car: Don't Leave Home Without It
Posted by: Craig Knapp
December 06, 2009

Too many times I'm faced with having to advise a client AFTER the fact on the importance of carrying underinsurance (also known as UIM coverage) and uninsurance (also known as UM coverage).  This type of insurance is very cheap and will be extremely valuable if you, or a loved one, are invovled in a car accident.  The reaction from my clients is always the same...."I wish I had known."   UIM and UM coverage cannot be purchased in amounts greater than your bodily injury liability coverage amount.   

How does UIM and UM insurance work?  Consider this hypothetical:  You're invovlved in a wreck and suffer serious injuries (e.g., broken neck and you lost 2 months of work) after a car runs a red light and crashes into the side of you.  The other driver is at fault and has $100,000 of auto insurance to cover your injuries and medical expenses.  Lets assume your damages, the amount you're entitled to for pain, suffering, lost wages, medical bills, etc., is approximately $200,000.  How are you going to collect the other $100,000?  Does the driver of the car that hit you personally have $100,000, or any money over and above his/her auto insurance limit, to pay what they owe you?  There answer in almost every case is NO.  Here is where UIM comes into play.  If you have UIM coverage on your policy, your insurance company will pay you the remaining $100,000.  You're now compensated for your losses and injuries without trying to collect money from someone that does not have it.  

It should also be noted that in a case where there's an unfortunate death from a car accident, more likely than not the surving family members will only be able to collect the available insurance from the negligent driver (in a lot of cases that's only $30,000 or maybe $50,000).  Most people do not have money or assets to pay for this type of loss.  UIM coverage would apply to this situation as well.   

What Can You Do To Protect You And Your Family?  Under Arizona law (A.R.S. § 20-259.01) every insurance company MUST OFFER YOU IN WRITING UIM AND UM COVERAGE with limits not less than the bodily injury liability limits of your policy.  GET BOTH (UIM and UM coverage)!  Also, make sure your UIM and UM coverage is EQUAL, not less than, your bodily injury liability limit.  It's cheap, typically an extra $50-$75 dollars a year, and will really come in handy if your or a family member is faced with a seriously injury or death.

UM, or uninsured coverage, works the same way only UM coverage comes into play if the driver that caused the accident does not have ANY insurance.  You would then collect from your insurance company the damages you are entitlted to recieve (pain & suffering, medical bills, lost wages, etc.).    

How Do I Find Out If I Have UIM And UM Coverage?  Get a copy of your declaration page from your insurance company or broker.  The declaration page will list the coverages you purchased.  Review your auto policy today and get UIM and UM in equal amounts to your bodily injury liablity limit.  Your bodily injury liability limit, UIM limit, and UM limit SHOULD ALL BE AT LEAST $250,000, IF NOT MORE.  Purchase what you can afford but don't be cheap in this area.  The costs are too great should something serious happen on the road to you or someone in your family.  

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