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.
Continue reading "Full Coverage: Underinsured Motorists Coverage - Does the other guy have enough? Do you?" »