I have a client who was seriously injured in an auto accident. The other driver was at fault, but that other driver’s $100,000 liability coverage did not begin to cover my client’s injuries. My client received nothing from his $100,000 Uninsured Motorist/Underinsured coverage Motorist (called “UIM coverage”) because UIM coverage provides compensation only to the extent that it exceeds the liability coverage of the party at fault, the “liable” party.
For example, if my client had UIM coverage of $250,000, he would have been able to recover up to $150,000 from his insurance company after exhausting the other driver’s $100,000 of liability coverage – for a total of $250,000. But since my client’s UIM coverage equaled the liability coverage of the responsible party, he received only the liability coverage of the responsible party – $100,000. Unfortunately, $100,000 does not cover as much as it once did.
UIM coverage is usually equal to your automobile insurance liability limits. If you have excess liability coverage (commonly referred to as an “Umbrella”), you may be able to inexpensively increase your UIM coverage by extending it to your Umbrella.
For example, if you have liability and UIM coverage of $100,000 and have a $2,000,000 Umbrella, you may be able to add UIM coverage to that Umbrella. This would result in $2,100,000 in liability and UIM coverage. You must request this UIM Umbrella coverage and pay an additional premium.
The added protection of an Umbrella is important to you in the event you are determined to be liable for any loss. When extended to your UIM coverage it protects you from other drivers without sufficient insurance.
I strongly recommend that you immediately contact your insurance agent to discuss this. The additional cost of an Umbrella – and to extend the Umbrella to your UIM coverage – is well worth it. Once you make any change in your coverage, confirm that change to your agent in writing. You should also receive an “addendum” to your policy documenting any change in coverage.
I would be happy to discuss this with you. Please contact me with questions about this or any other legal matter. You can reach me at any time on 513-300-4012 . Never hesitate.
John L. O’Shea, Esq. | Cohen Todd, LLC
t 513 333-5227 | f 513 241-4495 | m 513 300-4012
250 East Fifth Street, Suite 2350, Cincinnati OH 45202-5136
[email protected] | www.cohentodddefense.com/attorney/oshea-john-l/