by Guest » Tue May 08, 2012 06:46 am
I have recently bought a car and want an auto insurance policy with the basic coverage. However, I want to ensure protection for my family in case any accident takes place. Can I opt for UIM or UM coverage along with the policy? I have also heard about the Family protection endorsement. Where lies the difference and which will be the better option?
Posted: Tue May 08, 2012 12:46 pm Post Subject:
Here is the thing... you don't even mention what state you are in and all 50 states have different laws and coverage's. You are best served contacting a local agent and asking these questions.
Posted: Wed May 09, 2012 05:13 am Post Subject:
I live in the state of Michigan. I want some expert advice to understand how UM coverage is dissimilar to the family protection endorsement one, and which one is more beneficial. Just hoped someone here will be able to help me out.
Posted: Wed May 09, 2012 07:20 pm Post Subject:
UM/UIM provides protection for personal injuries sustained by you or passengers in your vehicle similar to that under the personal liability section of your auto policy. If you are the victim of a covered event and the at fault party's insurance is insufficient to pay the full cost of your claim, the excess portion will be paid by your policy's UM/UIM coverage, up to its limits. Your UM/UIM limits for personal injury are usually the same (or less) than your selected Personal Liability limits. It is "optional" coverage, but most agents recommend that people carry it. It is fairly inexpensive (an indication that few claims are paid).
If your limits are the same as those of the at fault party, you do not collect twice. In other words, let's say you are involved in a collision and the medical bills are $30,000. The at fault party has $15,000 of coverage, and you have a limit of $30,000 UM/UIM coverage. You would receive $15,000 from the at fault party's insurance company, and $15,000 from your own insurance company.
But if the at fault party were to have $30,000 in coverage, you would not receive their $30,000 plus your $30,000 if the total damages were only $30,000. To collect the full $30,000 from your insurance company in this example, the medical expenses would have to equal or exceed $60,000. (The contract will describe the coverage limitations per person and/or per accident. Some states use "split" limits [$$ per person / max $$ per accident], other states use "combined" limits [max $$ paid per accident, no other limit on how much per person].)
UM/UIM will also provide the difference between what the insurance company pays in the aftermath of a legal judgment. Again, your UM/UIM policy limits must be higher than those of the at fault party, and you will only collect the difference between that amount and your policy limits. In some states, UM/UIM coverage for multiple vehicles can be "stacked" to create a larger pool of money. Michigan, like California, is one of twenty states that do not permit stacking.
The same holds true on the property damage side.
A family protection endorsement, may extend certain other benefits beyond, or in addition to, those of the UM/UIM. I can't tell you what it provides without seeing it first, and I can't tell you that it would be more beneficial. It probably IS NOT, when you consider that your UM/UIM also covers damage to your property, and the family protection endorsement most likely does not.
A 2007 Michigan Court of Appeals case seems to indicate that one insurance company's "Family Protection Coverage" included the UM/UIM coverage, but the case also identified the fact that claims for UM/UIM coverage must be made separately from all other claims, regardless of where the language for the coverage exists, and within the prescribed period for making those clams.
Send me the language of the Family Protection Endorsement and I will give you a better answer.
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