Wednesday, October 14, 2015

Uninsured Motorist and UnderInsured Motorist - What DO They Cover?



The KISS version:
Uninsured Motorist (UM) and Underinsured Motorist (UIM) provides financial protection for Bodily Injury (BI) sustained by an "insured" (you, any "family member" or passengers in your vehicle) which you are legally entitled to recover from the operator/owner of the vehicle causing the accident in the event the driver/owner of the vehicle causing the accident either has NO insurance (yes, we all know driving without insurance is against the law) or they don't have enough coverage to cover all of these costs. UM and UIM do NOT cover the damage to your vehicle or your property with a few exceptions! FYI, hit and run accidents need to be reported to law enforcement and fall under Uninsured Motorist.
UM & UIM can also come into play for you and "family members" as pedestrians and as passengers in someone else's vehicle. Just remember - you can't double/triple dip.


How can I protect my vehicle and property?
Covering your vehicle: If you carry collision coverage on your vehicle you can make a claim through your own insurance for the damages. You would have to pay your deductible, but in most cases your insurance carrier will make every attempt to recover the full amount of the claim including your deductible from the driver/owner of the other vehicle. This can be a long process but you will get reimbursed for your deductible before the insurance carrier is reimbursed for their share.
In Illinois, if you don't carry collision coverage on a vehicle you can purchase Uninsured Motorist Property Damage (UMPD) coverage. Talk to your agent about this if you are interested.
Covering your property: Purchase some type of homeowners insurance: Condo, Renters, Mobile Home, Dwelling Fire and Homeowner policies are available. If you live in your motorhome or on a boat you can/should include coverage for your personal property with these policies as well.


How much UM and UIM coverage do you need?
Most insurance carriers don't allow you to have UM/UIM limits higher than your Bodily Injury Liability limits; we recommend you carry them at the same level as your BI. A catastrophic accident can be financially devastating between immediate medical expenses, lost wages and long term medical expenses, even with health insurance coming into play.


Disclaimer: This is an abbreviated explanation PLEASE read your policy for full details, including
the definitions, limits of coverage, exclusions and duties. Contact your insurance agent for a detailed explanation of these coverages.










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