The Importance of Uninsured and Underinsured Motorist Coverage

Did you know that 'full coverage' auto insurance is a total myth?

Here's what you need to know about uninsured and underinsured motorist ("UM") insurance ...

There are two types of UM coverage available:

1. 'Traditional' UM coverage, also known as 'reduced by' UM coverage, reduces the amount of UM coverage available to an injured party by the amount of liability coverage the at-fault driver has in place. By way of illustration, if you are injured by the negligence of an at-fault driver with $25,000 in liability insurance, and your policy has $25,000 in 'traditional' or 'reduced by' UM coverage, you have NO underinsured motorist coverage available. Motor vehicle accidents often involve bodily injury claims exceeding $25,000 and many of our clients are surprised to learn that their 'full coverage' insurance policy does not provide full coverage at all. If you were involved in a motor vehicle accident with a driver who was completely uninsured, your UM policy limit of $25,000 would cap your damages and you could be on the hook for thousands of dollars in medical bills.
   

2. 'Add on' UM coverage serves to increase or supplement the limits of liability insurance coverage available after a car accident with an uninsured or underinsured motorist. Thus, if you purchase $25,000 in 'add on' UM coverage, and you are injured by an at-fault driver with $25,000 in liability insurance, you would have $50,000 available for medical treatment and your policy would supplement the insurance coverage available to the underinsured driver who caused the accident.

We suggest purchasing at least $50,000 in 'add on' uninsured or underinsured motorist coverage. The experienced car accident lawyers at Mangrum & Mangrum, LLC have seen far too many cases involving injured motorists stuck with expensive medical bills due to the 'full coverage' myth. Give us a call to schedule a free initial consultation if you are involved in an accident.