Auto Insurance – What Do I Need? Underinsured Motorist Coverage
Tuesday, September 25, 2012 • 4:42pm
UNDERINSURED MOTORIST COVERAGE
In this article on auto insurance, I would like to discuss Underinsured Motorist Coverage, an auto insurance policy option that protects drivers for property damage and bodily injury caused by car accidents when the other driver has insufficient coverage.
Underinsured Motorist Coverage compensates the injured party for the difference between the injury suffered from the auto accident and the liability covered by the insurance of the driver at fault. And, like Uninsured Motorist Coverage, Underinsured Motorist Coverage is a part of your auto insurance policy that your insurance carrier would rather you didn’t know about.
Here’s an example of how Underinsured Motorist Coverage works:
I recently resolved a case for a lovely senior citizen who was seriously injured in a motor vehicle accident due to the negligence of another driver. At the time of the accident, the other driver was driving erratically, weaving in and out of traffic, speeding, and broadsided the car that my client was driving. My client suffered multiple fractures that required surgery, a collapsed lung, and a minor (thankfully temporary) form of brain injury. My client was in the hospital and rehabilitation for two and a half months.
As I sat with my wonderful, older client and her son, I explained to them that the amount of liability coverage that was purchased by the driver whose negligence caused her injuries was only $100,000, far too little to compensate her properly for the serious injuries that his negligence had caused her.
Fortunately, my client had set her Underinsured Motorist Coverage at $500,000 when she purchased her auto insurance. When the reckless, negligent driver’s insurance reached its $100,000 policy limit, my client’s insurance company stepped in to pay the remaining $400,000 of Underinsured Motorist Coverage that she had selected, and my client was fully and fairly compensated for the injuries and losses that she suffered.
Underinsured Motorist Coverage is always linked with Uninsured Motorist Coverage; it is sometimes abbreviated as “UM/UIM Coverage.” When the policy limit for one coverage is set, it automatically sets the limit for the other.
Underinsured Motorist Coverage is very inexpensive coverage, and insurance companies are required by law to offer UM/UIM coverage up to the same amount of liability coverage that you are purchasing. ALWAYS get as much UM/UIM coverage as you can – as much as your bodily injury liability coverage. Proper UM/UIM coverage is the only way to protect you and your loved ones from uninsured and underinsured and reckless drivers.
As always, if you want to discuss this, call me toll free at 888-223-4379.
Frank Smith is a highly experienced negotiator who handles his clients’ opposition with civility, courtesy and respect. His experience and knowledge accumulated from his insurance company work gives him insights into how the insurance industry works. He doesn’t need to resort to overly aggressive and risky strategies in order to secure the compensation his clients deserve. This "civil" approach has led to what my clients have called very satisfying results.
For the first nine years of Frank’s 30+ years as an attorney, he worked as in-house counsel for two different insurance companies. In 1985, Frank began representing personal injury plaintiffs. Today, Frank handles all types of personal injury cases throughout counties such as Sussex County, Union County, Morris County and Hunterdon County, including those involving:
Frank’s personal injury practice includes counseling, claims, litigation, arbitration and mediation. He is a life member of the Multi-Million Dollar Advocates Forum, a member of the New Jersey Association for Justice, and a longtime member of the New Jersey State and Union County Bar Associations. Frank is also a Charter Member of the Garibaldi Inn of Court for Alternative Dispute Resolution, and a member of the Creighton Society. His experience includes working as a court-appointed Mediator and a court-appointed Arbitrator.
Click here to find Frank on:
Website - http://www.franksmithlaw.com
To contact The Law Office of Francis M. Smith, Esq., for a free consultation, call 908-264-2017 or contact the firm online.
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