When buying car insurance in Pennsylvania, one of the most confusing choices is whether to purchase Uninsured Motorist (UM) or Underinsured Motorist (UIM) coverage for their car. When I am asked to represent someone who has been injured in a car accident, in addition to the obvious questions about how the accident happened and what injuries were sustained, I am interested in finding out what insurance coverage is available to pay the claims. Often, the person who caused the accident either has no insurance or not enough insurance to fully compensate our client for the injuries sustained. In these circumstances, it is important to find out whether UM or UIM coverage is available.
Why Is UM Coverage Important to You and Your Family?
About 14% of motorists nationwide are uninsured, generally because they fail to pay their premiums or they are operating a car without the owner’s permission. Uninsured Motorist, or UM, coverage means that if you, members of your household, or passengers in your car are injured in a car accident by someone who has no insurance, your insurance company will act the insurance provider for the person who injured you and pay for your claims and losses. If you are injured by an uninsured motorist and you have not purchased this coverage, you will likely never collect a penny from the person who injured you in an accident.
Assume Mr. Smith failed to pay his premiums and his insurance is cancelled. He speeds down the road at 60 mph in a 25 mph zone, loses control, and slams into your car while you are stopped at a stop sign. If you have not elected UM coverage on your auto insurance policy, you will have to sue Mr. Smith get a judgment against him, and try to figure out how to turn that piece of paper into money in your pocket.
Collecting money from an uninsured motorist often impossible. Most lawyers won’t take your case because the chances of ever getting paid by Mr. Smith are small. However, if you bought UM coverage from, say, Nationwide, you can go to Nationwide and say, “I broke my leg, had to use a wheelchair and crutches, missed out on all of the things I enjoy doing, lost six months of work, etc.” and Nationwide will be required to pay (either voluntarily or after a trial) for all of your losses.
Why Is UIM Coverage Important to You and Your Family?
Underinsured Motorist, or UIM, coverage means that if you, members of your household, or passengers in your car are injured in a car accident by someone who does not have sufficient insurance to cover your claims and losses, you can collect the limits of the other person’s insurance coverage and look to your insurance company to pay the balance of your claims. If you are injured by an underinsured motorist and you have not purchased this coverage, receiving full compensation for your injuries is highly unlikely.
In Pennsylvania, motorists are permitted to have as little as $15,000 in liability coverage — the maximum money that the insurer for the driver at fault will pay people that driver injured. If you have not purchased UIM coverage and your losses exceed the limit of the other driver’s insurance, you have two choices: either accept that payment and forget about being fully compensated or go through a trial, get an excess verdict, and try to figure out how to collect from the other driver personally.
Assume Ms. Jones bought $15,000 in auto insurance. She runs into you with her car and causes $50,000 worth of injuries and losses to you. If you failed to select UIM coverage, the most you are likely to ever collect is her $15,000 in insurance coverage. However, if you purchased UIM coverage for your own protection, you can collect her $15,000 and an additional $35,000 from your insurance company for full compensation.
Selecting Uninsured Motorist coverage and Underinsured Motorist coverage is a great way to protect you and your loved ones from irresponsible drivers. I am not in the business of selling insurance, but these coverages also have the added benefit of being very inexpensive; ask for a quote on those coverages from your agent.
