Underinsured motorist coverage (UIM) covers you and your passengers for damage caused by another motorist who has insufficient insurance to cover the damages caused. This type of coverage compensates you or your passenger for the deficiency in the coverage of the motorist who caused the collision and injuries. The definition of what is an underinsured motorist is defined by the policy and can be modified by state law. Generally there are two ways insurance companies approach this definition, a less than approach or a damages approach. Insurance companies that use a less than approach define underinsured motorist as someone who has less coverage than your auto insurance liability limits. For example, if the driver that hit and injured you has $25,000.00 dollars of liability coverage and you have $100,000.00 of underinsured coverage the driver that hit you is an underinsured motorist. If that driver had $100,000.00 in liability limits the other driver would not be an underinsured driver. The other general approach is to define an underinsured motorist as someone who has limits that are insufficient to cover the insured's damages. Thus, if the opposing driver had $100,000.00 of liability coverage and you had $100,000.00 of underinsured coverage the opposing driver would be underinsured if you had more than $100,000.00 of damages. Thus when purchasing underinsured motorist coverage insurance you should try to determine which approach your company has taken, as the damages approach is much more favorable to you, your family and passengers.
If you have a claim where you have been hurt by another driver you need to look not only at the opposing drivers polices but at your own to insure policy to see if you can collect any benefits under your own policy. If you need assistance contact Chris Faiella, with the law firm of Tatlow, Gump & Faiella at 1-800-264-3455 for a free, consultation. Chris will help you determine your options and advise you as to the course of action that will best suit your individual situation.
If you have a claim where you have been hurt by another driver you need to look not only at the opposing drivers polices but at your own to insure policy to see if you can collect any benefits under your own policy. If you need assistance contact Chris Faiella, with the law firm of Tatlow, Gump & Faiella at 1-800-264-3455 for a free, consultation. Chris will help you determine your options and advise you as to the course of action that will best suit your individual situation.
