Philadelphia car accidents happen every day. While Pennsylvania drivers are required to have a car insurance policy, many do not realize that their policy may not provide enough protection in the event of a car accident.
One of the most important coverages in a PA car insurance policy is Underinsured Motorist/Uninsured Motorist (UIM/UM) coverage. This coverage provides additional financial compensation to injured insured drivers and others covered under the auto policy.
Underinsured Motorist (UIM) Coverage
Underinsured motorist (UIM) is applied when an at-fault driver’s auto policy does not sufficiently compensate injured drivers for their injuries and damages. UIM coverage is the next level of compensation insured injured drivers can seek when at-fault drivers are underinsured.
Below is an example of how UIM works.
Driver A has $15,000 in liability coverage. Driver A causes a car accident, and Driver B is injured. Driver B suffers serious orthopedic injuries and requires extensive medical treatment and surgery. Driver A’s car insurance company pays Driver B $15,000 pursuant to his liability coverage.
However, Driver B’s injuries and damages exceed $15,000; his damages amount to $100,000. In such a case Driver B will not be fully compensated for his damages. Thankfully, Driver B has UIM coverage of $100,000. Driver B can now file a UIM claim with his own insurance company to recover the remainder of his damages, i.e., $85,000.
If Driver B’s damages exceed the UIM limit, he can only recover up to the limit purchased. Using the same above example, let’s change Driver B’s damages to $125,000. He receives $15,000 from the at-fault driver, and $100,000 from his UIM claim. The total he recovers is $115,000. Therefore, he will not be compensated for the remaining $10,000 of his damages.
From the above example, you can see how UIM is a very important coverage. If Driver B does not have UIM coverage, even though he has $100,000 in damages, he can only recover $15,000 from Driver A.
Uninsured Motorist (UM) Coverage
Uninsured motorist (UM) coverage is applied when at-fault drivers do not have any liability coverage to compensate injured drivers for their injuries. Let’s use the above example, but only this time, Driver A, the at-fault driver, does not have any insurance coverage. Because Driver B has $100,000 of UIM/UM coverage, he also has $100,000 UM coverage.
Since Driver A does not have insurance, Driver B can file a UM claim. Driver B can recover $100,000 from his UM claim. If Driver B’s exceed $100,000, the maximum he can recover is still $100,000.
Help from Philadelphia Car Accident Injury Lawyer
If you have questions about a car accident in Philadelphia or other parts of Pennsylvania, call Jordan Namerow, a Philadelphia personal injury lawyer, to schedule a FREE consultation. Mr. Namerow always strives to obtain the best result for his clients. He has been selected by the American Institute of Personal Injury Attorneys as one of the “10 Best” personal injury lawyers in Pennsylvania who has provided exceptional and outstanding client service.