Protection Starts at Home - How UIM Protects Drivers

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 when at an instant that sense of security can be taken from you.  An auto accident can lead to serious injuries that lead to thousands of dollars in medical bills and prevent you from working.  If you, a resident relative, or a passenger in your vehicle is injured in an auto accident do to a negligent driver, who fails to carry bodily injury coverage, or the negligent driver flees the scene of the accident, you can find yourself in quite a predicament.  As a result, there may not be a way to reimburse you for medical bills or pain and suffering.  Your household may begin to accumulate unpaid bills, and typically leads you into bankruptcy.  Therefore automobile insurance that protects you and your loved ones is essential. 

What is Uninsured or Underinsured Motorist coverage (UIM)?

Uninsured or Underinsured Motorist coverage (UIM) is designed to protect you and your loved ones from being driven in to 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 bodily injury insurance, has insufficient bodily injury coverage, 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 amount of compensation obtainable is controlled by the amount of coverage the policyholder decides to purchase.  The more coverage, the higher the likelihood you and your loved ones will be adequately compensated. 

Uninsured or Underinsured Motorist coverage (UIM) Benefits

There are at least three more benefits associated with this particular automobile coverage.  Normally UIM coverage is limited to accidents involving just the insured vehicle.  In the event you or a loved one is injured in an auto accident while in a vehicle not listed in the insurance policy, “stacked” UIM will afford coverage to the injured person while he or she occupies an automobile not listed in the policy.  Another benefit is the 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.