Uninsured Motorist Coverage
Uninsured and Underinsured Motorist coverage, also known as "UIM", are a common coverage found on auto insurance policies. The purpose of UIM coverage is to protect the insured in the event that the driver responsible for the accident is not insured or is underinsured. Even though it is against the law in most states for drivers to be without insurance, there are still many drivers on the road without it. Also, there are many drivers that have minimum liability limit polices, which may be insufficient to cover the damages involved in a serious or multiple vehicle accident.
UIM Coverage Explained
With UIM coverage, the insured's own company steps in and covers the damages caused by an uninsured driver or for damages that exceed the at fault driver's amount of insurance coverage. For example, if an insured sustains an accident with serious injuries, and the at fault driver has a minimum liability policy of $25,000 per person/$50,000 per accident, and the insured sustains medical bills of $30,000, there is obviously insufficient coverage, not to mention the lost wages, and general damages the insured may be entitled to as part of a bodily injury liability claim. Per the policy, the at–fault driver's insurance will not pay more than $25,000 for the claim. With UIM coverage, the insured would be able to pursue the excess damages sustained up to the amount of the UIM policy limits by filing a UIM claim.
Peace Of Mind
UIM coverage has a somewhat strange dynamic as when you file a claim, you are pursuing payment from your own insurance company for an accident caused by another party. If UIM funds are paid for the claim, your company may then pursue reimbursement for payment directly from the at–fault party for the damages they have paid to you. This is a nice benefit as it can be very difficult to obtain payment from an uninsured or underinsured person directly for damages resulting from an accident.
The Importance of UIM Coverage
In some states, UIM coverage must be waived in writing by the insured. Insurance companies are required to keep a written waiver of the insured's denial of UIM coverage. If the insurance company is unable to produce a waiver, they may be required to extend UIM coverage in the same amount as the liability coverage in effect at the time of the motor vehicle accident.
Other UIM Coverage Situations
UIM coverage may also apply in bicycle or pedestrian accident. If the at–fault driver that strikes a pedestrian or bicyclist does not have insurance or is underinsured, the injured party may be able to use their UIM coverage or their parents' UIM coverage for their damages resulting from the accident.
The auto insurance company policies available through BestCarInsuranceCompanies.net offer UIM coverage. Get your free quote and start saving on insurance today!
