UNINSURED MOTORIST COVERAGE

Don’t be penny wise and pound foolish.

By Attorney Matthew B. Tozer

 A. UNINSURED MOTORIST COVERAGE – BUY AS MUCH AS YOU CAN AFFORD.

     Purchase as much uninsured motorist (“UM”) coverage on your automobile policy as you can afford. 

B. WHAT UM PROTECTS

    Uninsured Motorist coverage protects you and your family for losses and damages caused by an uninsured or underinsured driver.

 C. REASONS WHY YOU SHOULD HAVE SUBSTANTIAL UM COVERAGE

  Here are a number of reasons to increase your UM coverage:

 1. Inexpensive:  UM coverage is, generally speaking, extremely or relatively inexpensive.

2. Protection in Serious Collision: UM coverage provides good protection if you are significantly injured in a vehicular collision.  For example, if you become unable to work and are unable earn money for a long period of time due to another uninsured motorist’s negligence, UM cover would pay such provable losses, as well as for other damages.

3.  Protection as a Pedestrian: You may even apply your UM coverage if you or a family member are a pedestrian who is struck by an uninsured or underinsured driver.

4. Hit-and-Run Protection:  If you or your vehicle are struck by a hit-and-run driver, report the loss immediately to law enforcement.  Additionally, report the loss immediately to your insurance company.  By so doing, you will be sure qualify to utilize the UM coverage.  Review your policy regarding conditions for using UM coverage in this hit-and-run situation.

5. Underinsured Motorist Protection (UIM): If the negligent driver is insured, but does not have enough insurance to cover your losses, UM coverage (if the UM coverage exceeds the negligent driver’s liability coverage), will provide additional coverage for your losses.  For example, if you have a $100,000 UM policy, and the negligent driver has a $25,000.00 liability policy, you have $75,000.00 of potential UM coverage on the claim. 

E. CONSULT WITH YOUR INSURANCE AGENT 

   Talk to your agent about how much you can or should raise your UM coverage if you already have it, or obtaining it if you don’t have UM coverage. 

F. INSURANCE POLICIES MAY DIFFER

    Each UM policy from each insurance provider may be different and affect, modify, or, in some cases, not cover one or more of the areas I have discussed above.  Therefore, determine the policy coverage and coverage exclusions with your insurance agent and by reading the policy.

G. MY NUMEROUS EXPERIENCES

    In my experience, the benefit of UM protection far exceeds its cost.  I have personally represented many clients who, due to having limited UM coverage, recovered far less money than they were entitled to.  Further, I have been contacted by quite a number of persons who did not have UM coverage and were struck and seriously injured by an uninsured driver and, as a result, suffered significant financial loss.

H. IF YOUR INJURED BY AN UNINSURED MOTORIST

AND YOU HAVE NO UM COVERAGE

   But even if you don’t have UM coverage, if you are injured in an automobile collision, contact an attorney anyway because the attorney may, in some cases, be able to discover other sources of recovery.  However, many times, an attorney will not find other sources of recovery or will not agree to represent you.  In such a case, the failure to purchase UM coverage may result in no recovery or a severely diminished recovery for your losses.  Therefore, the wise choice is to purchase as much UM coverage as you can afford!

I. FACTUAL EXAMPLE:

    A husband, wife, and their two children, while traveling to the beach for a day of fun and sun, suddenly are negligently broadsided in an intersection at high speed by a large sedan driven by an unemployed, uninsured driver with few assets. Both the husband and wife receive serious injuries and are each unable to work for over a year.  The children received serious injuries as well.

    In this case, the main source of compensation may be the uninsured motorist insurance provided by the family’s automobile insurance policy. With adequate UM coverage, this family would be entitled to have their losses paid under the UM policy.  Without adequate UM coverage, depending on what other types of insurance this family had, this scenario could result in financial catastrophe.

Disclaimer: The information provided in this article is informational only and is based on California law. The subject matter and applicable law in all legal areas is in a constant state of change. Different states have different laws.  No legal advice is given and no attorney/client or other relationship is established or intended.  

I am located in California and comply with all ethical rules of the State Bar of California.  

Copyright 2006 by Matthew B. Tozer

MATTHEW B. TOZER

Attorney at Law

1000 Quail Street, Suite 189

Newport Beach, CA  92660

Tel.: (949) 863-9445

Fax: (949) 209-5343

www.tozerlaw.com