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Understanding Uninsured/Under insured Motorist Claim

While most state laws dictate that auto insurance companies must offer their clients uninsured motorist coverage (UMC), it is not a necessary inclusion in the policy’s primary requirements. However, the uninsured motorist coverage is a vital resource to include in your insurance. In case you are ever in a motor accident, this coverage can safeguard you and your family, protecting you from having to file a lawsuit for unpaid medical expenses.

To Cover Or Not To Cover

Essentially, an Uninsured Motorist Coverage (UMC) or Under insured Motorist Coverage (UIM) helps you fulfill the financial burdens of any damages to your health, your family’s health or your belongings if you are in an accident with a driver who has no liability insurance, or is under insured.

Of course, the law will analyze the circumstances to finalize whether or not the driver is faulted with the cause of the accident, and has to pay the required sum for damages.

You have to opt for or opt out of this coverage when signing your auto insurance policy. If you choose not to purchase UMC/UIM, you sign a waiver, which is a form that clearly states that you turned the coverage down.

Uninsured motorist coverage terms can be classified as follows:

  • Under insured Motorist (UIM): This coverage fulfills a limited amount of costs if you suffer bodily injury in an accident with a motorist who does not have ample liability coverage for the damages.
  • Uninsured Motorist Bodily Injury (UMBI):This fulfills costs related to injuries you and other people in your vehicle suffer in an accident with an uninsured driver.
  • Uninsured Motorist Property Damage (UMPD):This fulfills the costs for any damage to your automobile in an accident with an uninsured driver. Check with your insurance company to know the limit of UMPD. Know that you may not need UMPD if you have collision coverage in your auto insurance policy.

Uninsured motorist coverage can be accessed once you collect the financial settlement from the insurance of the party who is at fault.

Securing Your Safety

AUMC/UIM may seem like an extra expense in your auto insurance policy.

However, remember that it does not merely help you cover any medical bills, but also compensate you for several injury-related losses, such as lost salary and trauma. It can be used along your health insurance coverage to bridge any financial gap caused by a lesser monetary compensation received from an under insured motorist.

If you are looking for the auto insurance policy that provides uninsured/under insured motorist coverage, or set up a comprehensive consultation, contact Gregg Marcus today.