Protection Starts at Home - Uninsured or Underinsured Motorist Coverage (UIM)

According to the August 2009 issue of American Journal of Medicine, medical bills account for sixty percent of bankruptcies. You can spend your entire life building a solid foundation for you and your family, reinforcing your sense of security. That foundation is tested when you are involved in an auto collision that results in bodily injury. Bodily injury could lead to crippling damages: thousands of dollars of past and future medical bills, past and future lost wages, and the loss of earning capacity. If the injuries are permanent, then pain and suffering becomes part of those damages. 

To make matters worse, if you, a resident relative, or a passenger in your vehicle is injured in an auto collision do to a negligent driver who fails to carry proper insurance, or the negligent driver flees the scene of the accident, you may find yourself unable to work and unable to pay thousands of dollars in medical bills. Your household may begin to accumulate unpaid medical bills that lead to bankruptcy. Therefore, automobile insurance that protects you and your loved ones is essential.

Uninsured or Underinsured Motorist Coverage (UIM)

Uninsured or Underinsured Motorist coverage (UIM) is designed to protect you and your loved ones from being driven into bankruptcy by crippling bills. The function of UIM coverage is to provide coverage to you, a resident relative, and occupants of the insured vehicle when an auto accident occurs with a negligent driver who does not carry proper insurance, or flees the accident. UIM coverage reimburses the injured person for past and future medical bills, past and future wages, loss of earning capacity and pain and suffering. The more coverage you purchase, the higher the likelihood you and your loved ones will be adequately compensated.

Benefits Associated with Uninsured or Underinsured Motorist Coverage (UIM)

There are at least three more benefits associated with this particular automobile coverage.

Normally, UIM coverage is limited to accidents involving vehicles listed on your insurance policy. Insurance coverage known as “Stacked” UIM may afford coverage to the named insured while occupying an automobile not listed on the policy.

Another benefit is the “stacked” UIM coverage adds together the limits applicable to each automobile insured. For example, an insured with three automobiles, who had purchased UIM coverage on each vehicle with limits of $100,000 each person and $300,000 each accident (100/300) is actually provided limits of $300,000 per person and $900,000 each accident (300/900).

The third benefit is the statute of limitations (the time in which an injured person is legally able to bring a personal injury claim) is extended from the traditional four years to a five-year statute of limitation. UIM insurance provides three unique advantages that you and your loved ones should not live without.  

Tips on How to Protect Your Household

Here are a few tips on how to protect your household.

• Read the insurance forms carefully. Florida law requires the insurance company provide you a form most commonly called “Underinsured/Underinsured Motorist Coverage Rejection or Election Form.” You must knowingly sign this form either accepting, rejecting or limiting UIM coverage.
• Ask questions from your insurance company. If you are not satisfied with their explanation, speak with your attorney.

Even after purchasing UIM coverage, as with any insurance policy, review your coverage each year and make certain you have sufficient automobile coverage to protect you and your loved ones from the clutches of bankruptcy.

Orlando Car Accident Lawyer

Ed Arango, Burnetti, P.A.