Understanding Uninsured/Underinsured Motorist Coverage by Harding & Associates, P.C.
When you’re considering auto insurance, it’s essential to think beyond just liability and collision coverage. At Harding & Associates, P.C., we emphasize the importance of uninsured/underinsured motorist (UIM) coverage. This critical component can protect you in situations where the at-fault driver has no insurance or insufficient coverage to pay for your damages. UIM coverage serves as your safety net and is incredibly versatile—it follows you whether you’re driving, cycling, or even walking. If you’re hit by a car in any of these scenarios, your UIM coverage can step in to cover the costs.
The Realities of Uninsured Drivers
Did you know that nearly one in six drivers on the road today doesn’t have insurance? This statistic is alarming, especially when you consider the financial impact of being in an accident with an uninsured driver. Without UIM coverage, you could be left to cover your medical expenses, lost wages, and other damages out of your own pocket. This coverage ensures that you’re not left financially vulnerable due to someone else’s lack of responsibility.
How UIM Coverage Protects You
UIM coverage isn’t limited to car accidents where you’re behind the wheel. It also covers you in situations where you’re a pedestrian or cyclist. For example, if you’re out for a bike ride and a car hits you, your UIM coverage from your auto insurance policy can help cover your medical bills, even though you weren’t driving at the time. This is a crucial aspect of UIM coverage that many people overlook.
The Power of Stacking Insurance Policies
One of the most powerful features of UIM coverage is the ability to “stack” policies. Let’s say the person who hit you has only $25,000 in coverage, but your medical bills are much higher. If you have multiple vehicles insured under separate policies, you can often stack the UIM coverage from each vehicle to increase the total amount available to you. This stacking can significantly enhance your protection, ensuring you’re fully covered even when the at-fault driver’s insurance falls short.
In one case I handled, a client had $260,000 in medical bills after an accident. The at-fault driver only had $100,000 in coverage. By stacking the client’s UIM policies from multiple vehicles, we were able to cover the full amount. Additionally, we discovered that because the client’s son lived with her, we could also stack his UIM coverage, further increasing the available funds. This example highlights the importance of understanding your policy and exploring all possible avenues for coverage.
The Fisher Case and Its Impact on UIM Claims
A significant legal development in UIM claims is the Fisher case, a Colorado Court of Appeals decision that reinforces the rights of policyholders. The Fisher case mandates that your UIM insurer must promptly pay undisputed medical bills without unnecessary delays or disputes. This ruling ensures that you receive the funds you need for treatment without the typical hassles associated with insurance claims.
Avoiding Rate Increases
One common concern is whether using your UIM coverage will result in increased insurance premiums. The good news is that in Colorado, your insurance company cannot raise your rates or penalize you for using your UIM or medical payment (MedPay) coverage. This means you can confidently file a claim without worrying about your insurance rates going up.
Uninsured/underinsured motorist coverage is a vital component of any auto insurance policy. It offers protection in scenarios where the at-fault driver’s insurance is inadequate, and it follows you wherever you go, whether you’re driving, cycling, or walking. By understanding the power of UIM coverage and how to maximize it—through stacking policies and leveraging legal precedents like the Fisher case—you can ensure that you’re fully protected. If you ever find yourself in an accident, don’t hesitate to consult with Harding & Associates, P.C. to navigate these complexities and secure the compensation you deserve.
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