Jill: Hello everyone! I'm Jill Bollwerk.
Andy: And I'm Andy Pickler, and we are the attorneys at Bollwerk and Associates.
Jill: We haven't gotten any new coffee mugs yet from anyone, so I'm using my Elon University mug, where my son went to school.
Andy: And I'm recycling from last week - Foster Web Marketing. They're great, we'll keep using their coffee mugs until somebody else sends us a different one!
Today's Topic: Underinsured Motorist Coverage (UIM)
Jill: Today we're going to talk about part four of our four-part series on understanding your auto policy in Missouri - underinsured motorist coverage, or UIM.
What is Underinsured Motorist Coverage?
Andy: Underinsured motorist coverage applies when you're in an accident where the other driver has insurance, but not enough to cover your injuries. For example, if they only have $25,000 in coverage and your injuries require more than that to make you whole, your underinsured motorist coverage can kick in after their policy limits are exhausted.
Key Differences from Uninsured Motorist Coverage
Jill: There are important differences between uninsured (UM) and underinsured (UIM) coverage:
- UIM is not mandatory in Missouri (unlike UM)
- Because it's not mandatory, anti-stacking provisions are enforceable for UIM coverage
- Not every policy in Missouri has UIM coverage
Important Policy Requirements
Before UIM coverage can be activated:
1. You must collect the full policy limits from the underinsured driver
2. You need permission from your insurance carrier to pursue the other driver's policy limits
3. After getting permission and settling for policy limits, you can pursue a second claim against your UIM carrier
Critical Policy Provisions
Two key aspects to understand:
Who Qualifies as an Underinsured Motorist?
- Many people assume it's straightforward, but it depends on how the policy is written
- Some policies define an underinsured motorist as someone who has less coverage than you do
- Example: If you have $100,000 in UIM coverage and the other driver has $100,000 in coverage, you might not have any UIM claim availablee enough coverage to pay your entire claim
Available Coverage Amount
Andy: Let's use an example:
- Other policies define it as someone who doesn't hav
- If the person who hit you has $25,000 in coverage
- And you have $100,000 in UIM coverage
- Most policies will only bridge the gap
- This means your UIM would pay $75,000 (to reach the $100,000 total when combined with the other driver's $25,000)
- You don't get $100,000 on top of the other driver's coverage
Jill: Not all policies work this way. Some provide the coverage in excess of what the other driver pays, which is why it's so important to have a lawyer review your policy after a serious accident.
Value of UIM Coverage
Jill: If you have UIM coverage, good for you for protecting yourself. It's usually worth it:
- Some clients who would have only received $50,000 ended up getting $500,000 because they had UIM coverage
- We recommend getting it if you can afford it
Jill: We've completed our four-part series on understanding your auto insurance policy. If you've watched the videos and have questions, please leave a comment. We'd love to address them in future episodes.
Andy: We know we talk like lawyers because that's what we do all day, so what makes sense to us might not make sense to others!
Both: Thanks for watching! We'll see you next time - though we're not sure what topic we'll cover next. It'll be a surprise for everyone, including us!
