Why You Need Uninsured and Underinsured Motorist Coverage
Our Pennsylvania injury attorneys often see the devastating consequences of car accidents caused by uninsured or underinsured drivers. These drivers can leave innocent victims with significant injuries and financial losses, making it crucial for individuals to protect their families with the right auto insurance coverage.
While it is illegal to drive without insurance in Pennsylvania, this law doesn't stop everyone. Moreover, not all states have laws requiring drivers to carry insurance. If you get into an accident in one of these states, the risk of encountering an uninsured driver is even higher.
UM/UIM coverage provides protection in the event that you are involved in an accident with a driver who either has no insurance or insufficient insurance to cover your damages. To learn more about the basics of UM/UIM coverage, check out our previous article: Insurance that Protects You: Uninsured Driver Motor Vehicle Insurance Coverage.
Case Examples Highlighting the Importance of UM/UIM Coverage
Underinsured Driver
Our client suffered a broken wrist in an accident. The at-fault driver had only $25,000 in coverage, which was insufficient to cover the medical bills. Thanks to the client’s UM coverage, they received an additional $60,000 from their own policy, ensuring full coverage of their medical expenses.
Uninsured Driver
Our client was hit by an uninsured driver and sustained significant injuries. Fortunately, the client had UM coverage and was able to claim $50,000 for medical expenses. Without this coverage, the client would have received nothing, leaving them financially devastated.
Uninsured Driver – Hit and Run
In hit-and-runs where the driver cannot be identified, the situation is treated as though the driver were uninsured. Our firm handled a case like this where our client’s UM coverage stepped in to cover the damages, providing crucial protection in a situation where the responsible party was never found.
Key Considerations for UM/UIM Coverage
1. Ensure You Have UM/UIM Coverage
First and foremost, confirm that your policy includes UM/UIM coverage. Without it, you could be left paying out-of-pocket for medical expenses, lost wages, and other damages caused by an uninsured or underinsured driver.
2. Match Your UM/UIM Coverage to Your Bodily Injury Coverage
Your UM/UIM coverage should ideally be equal to your bodily injury coverage. This ensures that in the event of an accident, the compensation available to you mirrors the protection you would have if you were the at-fault party.
3. Opt for Full Tort Over Limited Tort
Choosing full tort over limited tort allows you to seek compensation for pain and suffering, which can be substantial in serious accidents. Limited tort restricts your ability to claim these damages.
4. Always Have Stacking on Your Policy
Stacking UM/UIM coverage is beneficial even if you only have one vehicle. This type of cost effective coverage extends to family members who live with you, passengers in your vehicle, and non-car motor vehicles like motorcycles. Stacking can significantly increase the compensation available in the event of an accident.
5. Choosing Coverage Limits
UM/UIM coverage can be purchased in increments of $15,000, $25,000, $50,000, $100,000, $250,000, and up. While the actual coverage for your vehicle is the most expensive part, ensuring coverage for yourself is relatively affordable.
For situations with underinsured drivers, your UIM policy will be added onto their policy. For example, if the other driver had the Pennsylvania state required minimum of $15,000 in coverage and you had $50,000, you would be able to collect $65,000 (if you could prove you needed it.)
Awarded amounts of coverage can also get complicated when there are multiple injured people in one car. For example, everyone in the car could individually be covered for $100,000, but the maximum coverage for the car could be $300,000. So, if four people were injured in this case, they would only get the maximum of $300,000, not $100,000 x 4 = $400,000. (Confusing situations like that are why it’s smart to consult with a personal injury attorney!)
6. Review Your Policy Regularly
It’s essential to review your insurance policy regularly. We offer free policy reviews to help you identify any gaps in your coverage and make necessary adjustments before an accident occurs. Once you are in an accident, it’s too late to change your provisions.
Ensuring adequate UM/UIM coverage is crucial for protecting yourself and your family from the financial fallout of accidents involving uninsured or underinsured drivers. Don’t wait until after an accident happens, because by then it’s too late — review your policy today and make necessary adjustments. For personalized advice and a comprehensive policy review, contact the experienced attorneys at Fiffik Law Group. We are here to help you navigate the complexities of auto insurance and ensure you receive the compensation you deserve.