Practice Areas

Blog

Legal News

Library

Raising Your UM/UIM Coverage Limits Could Help You Get Paid

"These are the times that try men's souls" .. and their wallets!!

As a consequence of what can be in the least described as "uncertain" economic times, people are looking for ways to keep more money in the bank and reduce their day-to-day costs of living. Each month, millions of car owners are going to get renewal notices from their insurance companies explaining that their current policies are about to expire, and asking them if they want to make any changes to their exisiting policy coverages. Many will ignore even a brief look at the coverages they have in effect, but will only check to see what the premium is going to be this period. While understandable, it is not very smart. Some clever thinking and negotiation with your carrier can better protect you while not causing your policy premium to go through the roof.

Under Virginia law, auto insurance companies have to offer their policy holders "uninsured motorist coverage" (UM) and "underinsured motorist coverage" (UIM), and the policy owner can elect to have those limits raised to the limit of the liability coverage on the policy.

Why is this important? The purpose of UM/UIM coverage in Code section 38.2-2206 is to obligate your carrier "... to pay the insured all sums that he is legally entitled to recover as damages from the owner or operator of an uninsured motor vehicle..." In other words, if you are injured in an accident and the other driver has no insurance, or his insurance is less than what a jury may award you in damages in a law suit, then your insurance company will have to make up the difference so that you get paid! Insurance comapnies don't necessarily like it, but in a proper case they have to pay.

In a recent case report in the Virginia Lawyer's Weekly, a 16 year old girl was awarded over $200,000 by a jury for injuries she suffered in an accident caused by a drunk driver (his BAC was 0.32 -- 4 times the legal limit). The defendant had policy limits of just $50,000 -- not nearly enough to cover the award. However, the girl's family auto policy had UM/UIM coverage amounts to pay a large part, if not all, of the judgment amount not covered by the defendant's insurance policy. Her family's policy therefore saved the day.

If you are worried about the increased cost of the additional coverage, talk to your company representative. You may find it possible to reduce the amounts of premiums for benefits you already pay for but do not use, or raise the amount of your deductible, to obtain higher liabilty and UM/UIM amounts without increasing by too much the annual premium. It is worth looking into.

Free Reports

Free Case Evaluation

FAQs