Uninsured Motorist Insurance Tips
Read these 19 Uninsured Motorist Insurance Tips tips to make your life smarter, better, faster and wiser. Each tip is approved by our Editors and created by expert writers so great we call them Gurus. LifeTips is the place to go when you need to know about Car Insurance tips and hundreds of other topics.
Cheap Car Insurance is Still Insurance
Not everyone has insurance. Even though everyone is supposed to, not everyone follows directions. If you are hit by an uninsured motorist, do you have coverage that will pay your medical bills or repair your car?
The coverage you need is something you may not have automatically depending on your state. Keep reading to learn more about what does uninsured motorist car insurance cover:
- What does uninsured motorist car insurance cover? Uninsured motorist coverage (UM/UIM) covers bodily injury in case of an accident with uninsured motorist where the uninsured motorist is at fault.
- Does uninsured motorists insurance pay for the repair? No. You either need uninsured motorist property damage coverage to repair your car or your collision coverage may be the coverage that will get your car repaired.
- Is there an uninsured motorist recommended coverage? If your state allows you to have uninsured motorist coverage it is usually a great idea to protect yourself and your family with the same level of coverage you have for liability. If you are willing to make sure someone else is covered - don't you think your family deserves to be covered at the same level?
- Uninsured motorist insurance law. When people ask, "What is uninsured motorists auto coverage?" They then want to know if it is a required coverage. Check the price and see if it is worth it to protect yourself against uninsured drivers. Generally, if someone cannot afford auto insurance, they won't be able to help you repair your car or pay your medical bills if they hit you or your car.
Filing your Uninsured Motorist Coverage Claim
When you are in an auto accident with an uninsured or underinsured driver, the driver's car insurance is supposed to notify your insurance company as to the lack of coverage. Don't wait for them to do so; call your car insurance company immediately to let them know about your claim.
When you file an Uninsured Motorist Coverage claim, remember that your car insurance company is acting on behalf of the uninsured driver and will only pay if that driver is determined to be at-fault in the accident. So get an attorney to assure that you are represented fairly and that you get what you paid for from your car insurance company.
"Stacked" Uninsured Motorist Coverage
Stacked Uninsured Motorist Coverage means that, at the time that you purchased your car insurance policy, you selected uninsured motorist coverage for every car covered by your policy. For example, if you chose $25,000 UM coverage, and you have two cars, stacked UM coverage means you have $50,000 of coverage under which to make a claim.
Uninsured Motorist Coverage Claims
If you are in a position where you need to make an uninsured motorist claim or an underinsured motorist claim it is highly recommended that you seek professional legal help. Find an attorney who specializes in dealing with uninsured/underinsured motorist claims. Your insurance company may be seeking ways to reduce or deny your claim, so you need legal support to make sure you get what you are due. Many uninsured/underinsured coverage insurance cases result in a “breach of contract” case, which requires the assistance of an attorney. The attorney can help keep track of the specifics that the insurance company needs and can help file the uninsured motorist coverage claim to your satisfaction.
Uninsured Motorist Coverage: Bodily Injury
The Bodily Injury segment of Uninsured Motorist Coverage assures that you will be reimbursed for lost wages, medical expenses, and other damages caused when an uninsured motorist is at-fault in an accident with your insured vehicle. You determine the amount of bodily injury coverage when you open your car insurance policy. In many states, this coverage is mandatory. Check your state requirements and get a car insurance quote online.
Underinsured Motorist Bodily Injury Coverage
Underinsured motorist bodily injury coverage is related to uninsured motorist coverage. In this case, the underinsured motorist coverage will pay for expenses related to an accident caused by a driver with insufficient coverage. An underinsured motorist policy is part of your auto owners insurance policy. This type of coverage will pay the difference between the coverage limit you select and the other driver's bodily injury coverage limit. It will also cover your medical expenses, lost wages and other damages that you suffer. When you purchase your auto owners insurance policy, you can choose the maximum amount of bodily injury coverage that you will receive.
Uninsured Motorist Coverage in Your Car Insurance Policy
Uninsured Motorist Coverage pays the cost of injuries to you, your family members and your passengers as though your policy was purchased by the at-fault, uninsured driver. Many states and many insurance companies offer the uninsured motorist coverage as a supplement to under-insured at-fault drivers as well. Since your company defends the at-fault uninsured driver, occasionally your company will actually litigate against you. This rarely occurs, but is even more rarely explained.
Damage to your car may be collectible under uninsured motorist as well. For these reasons, insured drivers should match their uninsured limits to their liability limits. You want to do as much for yourself as you are doing for the stranger you might damage.
Before Settling With The Other Driver's Insurer…
Make sure that you have the consent of your insurance company before attempting to settle with the other party's insurance company. Why? Your insurer has certain rights in place and needs to be informed of any activity regarding the other insurer. You also want to make sure that you are making the right decision and your agent will be able to guide your through the process of dealing with another insurer. Remember, you are paying for the expertise of you agent, use this knowledge to your advantage and protect yourself.
The Importance of Underinsured and Uninsured Motorist coverage
Since you can only control how well you drive, you can never be truly safe on the road. It is important to protect yourself with uninsured/underinsured motorist coverage. Experts agree that this type of policy is very important. You should look to carry the same limits on your uninsured/underinsured motorist coverage that you do on your liability coverage. One of the major benefits of uninsured/underinsured motorist coverage is that it will compensate you for your pain and suffering, in addition to medical expense and property damage.
A Stolen Car And An Uninsured Motorist.
Your car is struck by another vehicle. You come to find out that the vehicle is indeed stolen and the driver (who happens to be the person who stole the car) is uninsured. The insurance company of the vehicle that struck your car refuses your claim on grounds that the car was stolen at the time of the accident, thereby removing their responsibility in this matter. The person who stole the car did so without the consent of the owner of the vehicle, this is true. It is also true that the insurance company does not have to pay on the claim because the coverage does not extend to this circumstance. Are you left holding the bag; definitely not. File an uninsured motorist claim with your own insurance company.
State Differences in Uninsured Motorist Car Coverage Requirments
Most states require that motorists be covered by uninsured and underinsured motorist coverage. However, before you accept this type of coverage you need to be away of your state's specific requirements. Each state has different rules about how uninsured and underinsured motorist coverage will work. Some states allow you to add on the full policy limit to another person's insurance. Other states have a rule that requires the subtraction of the other person's limit from your underinsured motorist claim. There are also differences in how uninsured/underinsured motorist claims can be made. In some states, these claims need to be made in court and other states allow the issues to be resolved through arbitration.
What If My Insurance Company Denies My Uninsured Motorist Coverage Claim?
If there is a point in your claim process where you feel that you are not getting the full amount for damages or if your insurance company denies your claim fully you still have recourse. You or your insurance company can call for arbitration. Arbitration consists of 3 arbitrators (one you pay for, one they pay for, and the third you split the costs for) who will then review the claim and decide what action to take. The arbitrators' decision is final. Neither party can influence this decision. It will take at the very least 30 days to come to a decision. Ultimately this will lead to you looking for a new insurer no matter the outcome.
Underinsured Motorist Property Damage Coverage
Underinsured motorist property damage coverage is mandatory in some states. This type of insurance is included as part of your overall auto owners insurance policy. Underinsured motorist property damage coverage protects you if your car is damaged in an accident caused by a driver who has insufficient insurance coverage. Depending on the state you live in, there may be other specific protections afforded by this type of insurance. Underinsured motorist property damage coverage will pay for damage to your car only, and not personal medical expenses. This type of coverage will pay the difference between your pre-determined coverage limit and the other driver's property damage coverage limit.
How to Deal With Underinsured Motorists
What if the other driver's insurance isn't enough to cover the extensive damage caused to your vehicle? Do you forgo dealing with the other driver's insurance company and turn in a claim to your own insurer? No; of course not. You must turn in a claim to the insurer of the other driver first. If the other driver is found negligent it is the duty of their insurer to pay the damages up to the liability limit. If there are any outstanding costs after this limit is reached then and only then is it acceptable to file and Underinsured Motorist claim with your own insurance company.
At-Fault Drivers Who Refuse To Pay
You've established that you are not the negligent driver in the accident. You've exchanged insurance information and have filed your claim. You get a call from the insurance company of the at-fault driver and they tell you something disturbing. The insurance company refuses to pay on your claim. The reason, they tell you that their customer is refusing to cooperate with them. What can you do? Since the driver is in clear violation of their insurance agreement you can treat them as an uninsured motorist and file a UM claim with your own insurance company. Make sure to get the refusal to pay on the claim writing.
Getting the Most From Your Uninsured Motorist Coverage
Most states require you to purchase uninsured or underinsured motorist car insurance policies as part of your overall car insurance policy. It is recommended that you purchase the highest coverage that you can afford in this area. This is especially true if you live in an area with a high number of uninsured motorists. Keep in mind that the state mandates for this type of coverage are generally very low and it is advisable to take on more than is required. If you are hit and injured by an uninsured or underinsured motorist, this policy can save you thousands of dollars.
Uninsured Motorist Coverage: Property Damage
The Property Damage segment of Uninsured Motorist Coverage assures that damages to your car will be covered if an uninsured motorist is at-fault in an accident with your insured vehicle. You determine the amount of property damage coverage when you open your car insurance policy. Property damage coverage is not available in all states, including New York.
Multiple Claims and Underinsured Motorist Coverage
Here you are, parking in the lot of a busy shopping center. All of the sudden, a car comes out of nowhere and hits not only your car but causes damage to the two cars on either side of yours. Everyone is okay, only the vehicles are damaged. You find out that the negligent driver is underinsured and that his insurance will only pay out liable damage to $5,000. The damage the driver has caused is well and beyond $5,000 for all three cars. What will happen next? Not to fear, pro-rated settlements to the rescue, offered to you on a silver platter by the negligent driver's insurance company. What if the settlement still falls short? Submit the difference to your own insurance company using your underinsured or uninsured motorist coverage; your rates should suffer very little if at all and you get the piece of mind of getting the full settlement.
Bundled Underinsured and Uninsured Motorist Bodily Injury Coverage
In some states, underinsured and uninsured motorist bodily injury coverage are a bundled service. This type of dual-coverage may be mandatory in your state. Underinsured/Uninsured motorist bodily injury coverage pays for medical expenses, lost wage and other damages when you are in an accident caused by a driver who doesn't have enough car insurance or who completely lacks auto insurance coverage. One of the other benefits of this dual coverage is that it pays for injuries that are sustained during a hit and run accident. When you obtain an underinsured/uninsured motorist bodily injury policy you determine the limit for coverage.
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