Full Coverage: Underinsured Motorists Coverage - Does the other guy have enough? Do you?
Previously, we talked about the how you can make sure that the insurance policy you are sold on your car constitutes “full coverage” for your car or truck and that you really do have full coverage. In order to help you understand what “full coverage” really means, we are writing a series of entries about the different types of coverage typically available for auto insurance. Past entries have included liability coverage for bodily injury , liability coverage for property damage, and collision coverage, like liability coverage for property, but for your own vehicle. This entry will be the second of two on coverages that might apply when the driver who was at fault in the accident does not have enough insurance to cover the loss, or has no insurance at all.
Previously, we wrote about one of two very similar types of coverage to deal with a situation in which the other, at-fault, driver either has no insurance coverage or does not have enough to cover the damage. The first, is known as “uninsured motorists coverage” or “UM” for short applies when the other driver has no insurance at all. The other is known as “underinsured motorists coverage” or “UIM” for short and applies when the other driver has some coverage, but not enough to cover the damage he has done to the people in the accident. This entry will discuss UIM coverage.
UIM coverage exists because, unfortunately, many people drive on Kentucky’s streets and highways without enough automobile insurance. In the tight economic times we live in many people choose to put other priorities ahead of having adequate insurance coverage. As we discussed in our entry on liability coverage for bodily injury , the law requires every driver in Kentucky to have minimum coverage of $25,000 per person and $50,000 per accident (to cover multiple people hurt in an accident). KRS 304.39-110. However, when accidents involve more than just a sore back that heals within a couple of months, the damage might be much more serious and permanent. Broken bones, head trauma, airbag burns, ruptured or herniated discs in the spine, can all lead to losses that far exceed the $25,000 insurance coverage minimum. In that case, limits of $25,000 per person or $50,000 per accident may not be enough to compensate you or your loved ones for your injuries.
Because underinsured drivers exist, you need insurance coverage in case you are hit and injured by one of them and their coverage is not enough to take care of your injuries. This type of coverage is called “underinsured motorists coverage” because it refers to the situation that occurs when you are hit and injured by someone who does not have enough insurance coverage to properly and fairly compensate you for your injuries. If your injuries are bad enough, the other driver becomes underinsured (does not have enough coverage to fairly compensate you). If this occurs, the other driver’s insurance company will tender or give you the limits of his policy. That is, they will give you all of the money they have. But, if that is not enough to fairly compensate you, you then must turn to your own insurance company for assistance. This coverage is similar to uninsured or UM coverage, but allows the other, at-fault, driver to give you what they have on their policy first, before you have to turn to your own company for help. Like UM coverage, this coverage on your insurance policy will essentially act like the other driver’s liability coverage for bodily injury (if he had enough) and provide you money for pain and suffering, excess medical expenses, and excess lost wages as a result of the accident.
In Kentucky, unlike UM coverage, UIM coverage is not offered by default by your insurance company. Therefore, you must specifically ask for UIM coverage. Many people have this type of coverage, but many do not. Coverage is typically purchased in the same increments as liability coverage for personal injury or UM coverage and has per-person and per-accident limits just like liability coverage (increments like 25/50, 50/100, 100/300 – in thousands of dollars, etc.). This coverage will therefore not only apply to you as the driver and/or owner of the car, but any passengers you might have that are injured or anyone you let drive your car, like a child or spouse will also be covered. In addition, if you have multiple cars in your house, it is often possible to “stack” these policies to double or triple (or more) the money available to you.
Louisville, Kentucky personal injury and auto accident attorney Brian D. Cook says that “like driving without uninsured motorists coverage, it is incredibly unwise to drive without this type of coverage.” Brian has seen many cases where the injuries were so bad that the small amount of coverage available from the other driver was just not enough to cover all of the harm suffered by the client. He has handled fortunate clients that have UIM coverage and those that, sadly, are told that there is not enough money to compensate them because they didn’t have UIM coverage. Brian also knows that the need for UIM coverage isn’t just limited to situations where the other driver has minimum coverage and has handle many cases where even more than minimum liability coverage was still not enough to compensate his clients, who had to turn to their own UIM coverage for help. He warns, “don’t learn the hard way; for a couple of extra dollars on your premium, in most cases, you can turn a catastrophe into something manageable by having enough insurance when the other guy doesn’t.”
If you have questions about how underinsured motorists or UIM coverage works or if you were involved in an accident with another driver that did not have enough insurance and need assistance, please contact the personal injury and auto accident attorneys at Bahe Cook Cantley & Jones PLC for assistance. We are happy to help.
