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FAQ’s on uninsured and underinsured motorist coverage

By Sil

1. What is uninsured and underinsured motorist coverage?

Uninsured motorist coverage is a type of coverage which reimburses you even if there is no insurance at all on the other vehicle. Underinsured Motorist coverage is the term used when the other vehicle's policy limit is inadequate to pay for all your damages. Normally the motorist accidents include an

• Automobile accident,
• Semi-truck accident,
• Motor cycle accident,
• Bicycle accident,
• Drunk driving accident, and
• Pedestrian accident.

2. Who is covered under uninsured motorist coverage?

Uninsured motorist coverage would certainly reimburse you if

• You or any other acquaintance of yours traveling with you has suffered any loss in the accident.
• Anybody driving your vehicle with your due permission has sufferer any loss and
• Anyone traveling with you in your vehicle is covered in your policy or in any other vehicle you are driving which you do not own.

3. Does the policy cover rental cars?

Yes, only if you have rental car reimbursement coverage added to your policy.

4. Does it cover my teenage daughter or son?

Yes, provide they have proper driving license and they are included in the policy.

5. If any of my acquaintance, who is not a family member is in my car at the time of accident, does my policy cover them?

Yes, but they should have a valid driving license.

6.What are the limits to uninsured and underinsured motorist coverage?

Though your uninsured and underinsured motorist coverage assures you protection but there are certain limitations to such protections it offers:

• If a hit and run driver is involved in the accident you need to inform the police within 24 hrs.
• If the accident involves hit and run driver you should have to prove that his car has hit you truly.
• If your uninsured or underinsured motorist coverage is not
• If an uninsured driver hits you or any of your acquaintance when you are in someone else’s car your insurance coverage would be secondary to the insurance coverage of the other person.

7.When does uninsured or underinsured motorist coverage apply to?

You can use your uninsured or underinsured motorist coverage when an insured person is injured by an uninsured or underinsured driver. An uninsured driver can be a hit and run driver till you have the coverage in your policy.

8.What Losses Are Covered?

The policy provides you financial reimbursement for all losses that is covered in your policy. It might be caused by an uninsured, underinsured or a hit and run driver. Your damages would include

• All medical expenses you would have to bear for the accident
• Subsidiary losses you would have to suffer for the accident in your income or your earnings.
• All you out-of –pocket expenses you had to make for this.

The policy also covers several things that may be non monetary. You get a reimbursement for all inconvenience, pain and sufferings, economic distress, physical disability that you have suffered in the accident if it is covered in your policy. Though, there is no particular measure for the exact compensation for the non monetary compensation but the attorney and the insurance company fixes such issues based on the

• Intensity of the injury
• If the injury is completely curable
• What type of treatment is involved in this injury
• Time taken for the injury to get cured

9.What extent of uninsured motorist coverage would my insurance company offer me?

Your insurance company can only offer you an uninsured motorist policy covering a minimum amount of $30,000.00 per person or $60,000.00 aggregate. The limit is constant even if you purchase a much higher liability policy (policy which covers others for their injuries when you are at fault).If your liability policy is less than $30,000.00/$60,000.00, the insurance company will only issue UM coverage in amount. Thus, if you have a $15,000.00/$30,000.00 liability policy, your insurance company will offer uninsured motorist coverage for only $15,000.00/$30,000.00.

Most insurance companies would allow you to purchase uninsured motorist benefits in an amount matching to your liability policy. For example if you have $100,000.00/$300,000.00 liability policy, you will be able to purchase uninsured motorist benefits with the equal amount.

Alert! Some insurance companies will automatically issue uninsured policy of $30,000.00/$60,000.00 with higher liability limits. In that case you must confirm with your broker that how much more you would have to pay to avail the benefits that would match your liability policy limit.

10.How much uninsured motorist coverage do I need?

To assess on the extent of coverage you need is very relative. In normal terms however you must take up uninsured or underinsured motorist coverage till you can bear the expense. So if you fall under the high income group a severe injury would lessen your capacity to earn, so you should have an adequate UM protection.

Any careful person should always have less than $100,000.00 per person/$300,000.00 aggregate uninsured and underinsured motorist coverage. Naturally your liability policy should be written in that amount itself. The cost concerned for this is a burden for some.

11. What can I recover from the uninsured and underinsured motorist coverage after I have met with a motor vehicle accident?

Look up to ques 8.

12. Do I need an investigator?

If you meet with an accident involving semi truck or a commercial truck, investigation plays a very important role. Investigation acts as an evidence to find the root cause of the accident. Hazards in weather condition as snow, ice, storm, rain, wind etc can be a possible source of the accident. Moreover an investigator can investigate matters on all possible damages you had in the accident and would help you to get the reimbursement smoothly.

13. What should I do when the insurers are not listening when I am in need of the reimbursement?

If you want a reimbursement first thing you need to do is to detect the status of your claim. You should then send message over and over again. Now, when you finally manage to talk to someone, the file gets reviewed. And finally somebody might promise you that you would be called back.You might wait till the person calls you .If the phone doesn’t ring at all you might finally land up in renting a car yourself.

14.What should I do to get positive results?

After you meet with an accident you should not wait for a long time to opt for reimbursement.

• Approach the supervisor of the company and relate to him that you are being harassed and that nothing is being given to him in written.
• Provided you need to be polite in speaking
• Keep sending them letters clearly stating facts and stating what is going on.
• You may also send a letter to the supervisor with all possible documents, claiming your part of reimbursement.

15. What should I do, even if that doesn’t work?

Finally, when all other things fail you may contact your state’s insurance department and speak to the commissioner. The National Association of Insurance Commissioners has a link with the insurance department and the commissioner of every state. For that you may log into www.naic.org/state_web_map.html.The purpose of these agencies are to look after the insurance dealings of every state.

If they are also of no help, you may contact the attorney. Normally the insurance company’s avoid judicial complications. As you complain to the attorney, your insurance company would get a letter stating the legal formalities; they would now definitely take it seriously and do the needful.