Recent Updates
January 03, 2012
Medical Marijuana and Social Security Disability
December 30, 2011
Punitive Damages
December 20, 2011
Medical Marijuana and Your Workers' Compensation Claim
December 13, 2011
What Do You Do?: Making Sense of My New Profession
December 13, 2011
Telephone Record Theft
Uninsured Motorist Coverage
Posted by: Damon Davis
April 30, 2010
Topic: Personal Injury
Automobile insurance coverage is an everyday fact of life for most of us. Most people get around by automobile, at least part of the time, and therefore have insurance coverage. An often overlooked facet of this insurance, both in purchasing insurance and in settling cases, is underinsured and uninsured motorist coverage. Uninsured and underinsured motorist coverage are included in your policy unless specifically waived in writing. Uninsured motorist coverage protects the purchaser in the event an automobile accident is caused by an individual who has not purchased liability coverage. This may occur because the at-fault driver is simply irresponsible, or because they feel they cannot afford insurance. In these cases, the uninsured motorist coverage takes the place of the liability coverage the at-fault driver should have purchased.
Underinsured motorist coverage protects the purchaser in the event the at-fault driver has inadequate insurance coverage. This is not uncommon as the minimum insurance coverage in Colorado is only $25,000. That $25,000 may be used up simply on an ambulance trip and a day or two in the hospital. That does not even account for future surgeries, physical therapy, or lost wages. Underinsured motorist coverage will stack on top of the at-fault party's liability coverage to assist in making up for the short fall.
It is important to keep the value of underinsured and uninsured motorist coverage in mind when purchasing your own insurance policies. Generally, an insurance company will not sell uninsured or underinsured coverage in excess of your liability coverage. Thus, if you have a $25,000 liability policy, you will only be allowed to purchase $25,000 in uninsured and underinsured motorist coverage. Therefore, when you are selecting an amount of coverage for liability you should also keep in mind how much coverage you want for yourself in the event an at-fault driver causes injury to you and has inadequate insurance or no insurance at all.
The existence of your own uninsured or underinsured coverage must also be kept in mind when attempting to reach a settlement with the at-fault driver. In order to obtain your uninsured or underinsured motorist coverage, you must have the permission of your own insurance company before settling with the at-fault driver. Sometimes the at-fault driver or the driver's insurance company will attempt to settle with the injured party before that injured party obtains legal advice. The at-fault driver may ask the injured party to take a discount on the grounds that the injured party would otherwise have to pay an attorney. While this may be tempting, it is likely to interfere with the injured party's ability to obtain uninsured or underinsured motorist coverage from their own insurance carrier. The injured party may not think to obtain permission from his or her own insurance company before accepting the settlement. Additionally, the injured party may not give the proper notice to his or her own insurance company in order to obtain the additional benefits. Finally, the injured party's own insurer may insist that the at-fault party's insurance pay all or most of the policy limits before it will consider paying underinsured motorist benefits. Whether you are hiring an attorney to handle your claim for an auto accident, or are handling it yourself, make sure to take account of your uninsured or underinsured motorist coverage or you may be missing out on some of the insurance benefits for which you are already paying.
