Accident Checklist / Uninsured Motorist Insurance
We recently received a call from a client asking about "UM" or "UIM" coverage.In Oklahoma, you can decline the coverage and many do so as it is an extra charge.
Our recommendation to our client was that they should carry UM coverage for several reasons.Especially given the economy, the number of uninsured and underinsured motorists is on the rise.While carrying auto insurance is mandatory in Oklahoma, there are many drivers that either still don't carry it or only carry the bare minimum which would likely not be enough should you be in a serious accident.
The Insurance Research Council estimates that roughly one out of every six drivers may be driving uninsured by 2010. That's about 16 percent of the U.S. population.
No matter what the percentage of uninsured drivers on the road, it's prudent to carry uninsured motorist (UM) and underinsured motorist (UIM) coverage.Uninsured or underinsured motorist coverage can pay for injuries to you and your passengers, and in some locations damage to your property, when there is an accident and the other driver is both legally responsible for the accident and considered "uninsured" or "underinsured."
An uninsured driver is someone who did not have any insurance, had insurance that did not meet state-mandated minimum liability requirements, or whose insurance company denied their claim or was not financially able to pay it. A hit-and-run driver also counts as uninsured as it relates to bodily injury (UMBI).
UM pays for your injuries when someone with no insurance causes an accident or when you're hit by a hit-and-run driver. UIM kicks in when someone else causes an accident but doesn't have enough insurance to cover all your costs.
An underinsured driver is someone who had insurance that met minimum legal requirements, but did not have payment limits high enough to pay for the damage caused by the accident. In these situations, UM or UIM can pay you for your damages. It is important to note that uninsured and underinsured motorist coverages are separate, although in many states they can or must be purchased together.
Underinsured motorist protection pays you for damages that exceed the amount of coverage carried by a driver who is considered underinsured. UIM will only pay up to the limits of your policy after subtracting the amount paid by the other driver's insurance. This means that the amount listed as your UIM limit is the total amount paid by both insurance companies, not the additional amount your insurance company will pay after the other driver's insurance pays. Both UM and UIM apply to you and any passengers in your car, and to you and others listed on your insurance policy (including family members) when in other cars.
Remember if the person who hit you cannot pay for their auto insurance they will not be able to pay for the repairs on your vehicle or the medical bills that may be necessary
