I represent many clients who don’t understand the importance of maintaining Under Insured Motorist Coverage more widely known by the acronym UIM. If you are injured in an automobile accident which is not your fault and the at fault driver has insufficient liability insurance to pay your for your injuries then what do you do? If you have UIM coverage, your insurance company will pay you the difference not to exceed the limit of your UIM policy. If you don’t have UIM coverage you are simply out of luck.
Kentucky, like many states, has a law which requires vehicle owners to carry a minimum of $25,000.00 in liability insurance. You can purchase a higher amount if you want. If you only carry the minimum amount and you are at fault in a collision and another person is injured then the injured party will receive a maximum of $25,000.00 from your insurance company. If the injured person has damages exceeding $25,000.00 and has UIM coverage then her insurance company will pay an additional amount up to the maximum amount of the UIM policy limit. If no UIM coverage, again that person is simply out of luck.
In many automobile crashes where a person is injured, the medical bills alone exceed $25,000.00. What this means in a case where the at fault driver has only the minimum liability coverage and the injured person has no UIM coverage is that the injured party recovers nothing for her pain, suffering and lost wages and will still be responsible for any remaining medical bills that haven’t been paid.
So although insurance coverage can be quite complicated, the answer to why you should have UIM coverage is quite simple. Because most drivers can only afford the minimum liability coverage and that coverage is usually insufficient to cover all of the damages you may suffer in a crash. UIM coverage will make up the difference, up to the coverage limit. So not only should you buy UIM coverage you should buy as much as you can afford.
A car crash can change your life in an instant. Make sure you have enough UIM coverage to protect yourself and your loved ones.
Bill represents people who have been injured in automobile crashes. Call Bill for a free consultation if you have been injured in one.