Personal Injury and Workers’ Compensation Attorney
It is almost that time of year – “local summer” is coming to an end, and it is about to get a whole lot busier around here. You have probably heard of these terms mentioned above, but do you really know what they do—and why they matter in the event of a motor vehicle accident? Let’s break it down.
Uninsured Motorist (UM) Coverage
This protects you and your family if you are injured by a driver who has no insurance or even if you are in a hit-and-run accident where the other driver is never identified. Yes, even if the person that hits you cannot be located, you might be compensated through your own insurance policy. In most cases, UM coverage matches the liability coverage on your policy—but it is important to check. If your UM coverage is lower than your liability coverage, simply put you are protecting others more than yourself.
Underinsured Motorist (UIM) Coverage
This applies when the at-fault driver has insurance, but not enough to cover your injuries. UIM coverage typically matches your UM coverage but never exceeds your liability limits. In practice, what this means is that you will eventually make a claim against your own insurance policy for the benefits you previously purchased.
Why Higher Coverage Limits Matter
Your insurance company will not let you have more UM/UIM coverage than your liability coverage. That’s why it is smart to carry higher liability limits. It not only protects you from lawsuits but also ensures you and your family are covered if an underinsured driver causes an accident. After all, if someone doesn’t have enough insurance, they probably don’t have enough assets to pay for your injuries either. Sufficient UM/UIM coverage is meant to fill this gap.
Lastly, if your own insurance, either in the UM or UIIM context, does not value your injuries appropriately, a lawsuit must be filed against, yes, your own insurance company. Having to file a lawsuit against the company you bought car insurance from sounds strange indeed, however, in UM/UIM cases your insurer must “stand in the shoes” of the person that caused your injuries.
My quick advice – be proactive! You must have purchased a policy with enough coverage to protect you prior to an accident occurring. It will be too late if you only learn of your coverage limits after something goes wrong and your policy has insufficient limits.
At Portnoi & Reed, P.C., we deal with the issues all of the time. We understand how confusing and frustrating all of this can seem when you have a lot of other issues on your plate. We are more than happy to answer any/all questions you have about this topic. Kyle S. Reed, Esq. can personally be reached at 732-444-7914 or by e-mail at [email protected] to discuss these or any other issues you want to chat about.
Learn more about Red Bank Local Kyle Reed or visit Portnoi Law
