In today’s economic climate, more drivers are either going without automobile insurance or only purchasing the minimum amount required by law, which is $15,000 liability insurance. That is why it’s important to check your uninsured (UM) and underinsured (UIM) motorist coverage in your automobile policy.
UM covers you, the insured members of your household and your passengers, for bodily/personal injuries, damages or death caused by hit-and-run drivers or at-fault drivers who are uninsured. UM coverage will cover your medical expenses and other damages, up to the limit on your policy.
UIM covers you, the insured members of your household and your passengers, for injuries, damage, or death caused by the negligence of a person with insufficient automobile liability insurance. If you have an accident with a person whose coverage is inadequate to compensate you for your damages, your policy will pay the difference up to the limit of UIM coverage that you purchased.
For example, let’s say you have a $100,000 UIM policy and are involved in an auto accident, suffering damages that exceed $15,000. If the other at-fault driver only carries the California minimum of $15,000 in insurance, you can make a claim on your UIM for the additional damages. Your insurance carrier would get a credit for the amount paid by the other driver’s policy ($15,000), and you would receive up to an additional $85,000 maximum from your UIM policy, depending on the total damages incurred.
With the number of uninsured and underinsured drivers on the road today, it is wise to increase your liability limits up to the amount you can afford.
If you, a loved one or friend have been in an accident and are unsure of your rights, call Berglund & Johnson at 1-800-4-IF-HURT (1-800-443-4878) for a free consultation.