Uninsured Motorist Coverage Limits

According to a 2001 report by the Insurance Research Council, one in seven motorists in the . does not carry auto accident insurance. This is why many insurance experts recommend adding uninsured (UM) and under-insured motorist (UIM) coverage to auto policies. Unfortunately, UM/UIM coverage and limits can be confusing. Therefore, a working knowledge of UM/UIM coverage and limits is useful when choosing policies that fit the needs of drivers and their families. Uninsured/Under-insured Motorist Protection UM/UIM insurance protects against uninsured and under-insured motorists autel mx-sensor. UM coverage protects the insured, members of the insured's household and passengers for bodily and personal injuries, damages or death caused by an at-fault uninsured motorist. The limit of the policy is the maximum amount that will be paid per person, per incident. UIM coverage makes up the difference between the at-fault driver's liability insurance for the state's legal requirement yet is insufficient to completely cover the insured's claim. It likewise pays up to the limit of the UIM policy owner's coverage. The other driver in both instances, must be at-fault for the accident and either uninsured or under-insured. Uninsured and under-insured insurance policies are separate. This is an important distinction although many states permit combining or mandate that they be purchased together. Coverage Limits Minimum UM/UIM insurance limits must conform to state minimum limits for mandated liability insurance. For example, the state of California minimum liability limits are $15,000 for bodily injury to one person per accident, $30,000 for bodily injury to all people in an accident and $5,000 property damage (15/30/5) OBD2 Scanner. The minimum allowable UM/UIM coverage in California is therefore $15,000. Since liability minimums vary by state, minimum UM/UIM insurance will also vary. Maximum UM/UIM limits cannot exceed the limit of the insured's own liability insurance. If the insured's liability insurance is 100/200/50, the maximum UM/UIM limit is $100,000. Many industry experts recommend purchasing liability limits in amounts equal to the value of a person's assets. It makes sense to do the same with UM/UIM limits given the high cost of medical care. Uninsured/Under-insured Property Damage Uninsured and under-insured motorist property damage (UMPD/UMIPD) covers the insured's vehicle when involved in a collision with an at-fault uninsured or under-insured motorist. These policy additions cannot be purchased without UM/UIM. The coverage pays a fixed amount for collision repairs to the insured's car when the insured does not have collision coverage. The amount paid varies by state. In California, the maximum is $3,500. The coverage pays the insured's collision deductible when the insured has collision coverage. Comparative Negligence Many accidents are caused by more than one at-fault driver. Several states allocate the proportion of responsibility for accidents based on comparative negligence law. With comparative negligence law, the UM/UIM driver is held liable only for the percentage of fault directly attributed to the UM/UIM driver. If, for example, the UM/UIM driver is found to be 70 percent at-fault while the insured is found to be 30 percent at-fault, the insured's UM/UIM policy will only cover 70 percent of the damages up to the limit of the policy coverage. The uninsured driver could be disciplined by the court for driving without insurance, but that is a separate issue. UM/UIM Claims Resolutions Resolving UM/UIM claims can be time-consuming. This is partially because of the counter-intuitive fact that the insured's own insurance company actually represents the other driver in UM/UIM accidents. It should come as no surprise, therefore, that the insured's insurance company will not pay unless it is determined that the other driver is at-fault in the accident. Since the insurance company represents the other driver and not the insured, it may be prudent to get a lawyer to settle UM/UIM claims.
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