Understanding Uninsured/Underinsured Motorist Coverage
Uninsured/Underinsured motorist insurance (“UM’) will cover you in the event that another driver causes an automobile accident and the driver has no bodily injury (BI) insurance or has less coverage than the value of your claim. UM/UIM is a critical optional coverage to have because it’s usually the most irresponsible drivers who have little or no insurance.
Usually, when we meet with new clients, they think they have UM/UIM because they were told they have “Full Coverage”. Unfortunately, in the industry, “Full Coverage” is referred to as “Fools Coverage”. This is because “full coverage” usually means the absolute minimum required by Florida law. Florida law only requires personal injury protection and property damage coverage.
UM/UIM claims are similar to car accident claims with several important exceptions. First, as the client, you have a duty to cooperate with your insurance company which you would not have to do with the other driver’s insurance company. Additionally, The UM insurer has the right to obtain your records and take a statement from you, or even have you examined by an independant doctor of their chosing.
Filing suit in UM cases also involves some important differences. The named defendant in a UM case is your own insurance company itself. In contrast, in a case against an at-fault driver, that driver is the named defendant in the lawsuit and the jury is not ever allowed to know if they have any insurance at all.
The statute of limitations for a UM case is five years instead of four for a case against an at-fault driver. This can present a pitfall; however, because if you allow the at-fault driver to be released from liability by the expiration of the statute of limitations, your insurer will lose its ability to recover the amounts it may be obligated to pay you and your claim can be compromised by causing the UM insurer to lose the ability to pursue that driver (actual prejudice).
Also, if you settle with the at-fault driver with the intent to pursue your UM coverage for the value of your claim above the at-fault driver’s bodily injury coverage limit, you must get approval from the UM insurer to enter into the settlement. Again, this is because the UM insurer has the right to pursue that driver for any amount it pays you. The UM insurer can opt to pay you the amount of the at-fault driver’s bodily injury coverage in addition to the value of the UM claim and thus, prevent the release of the at-fault driver. This allows the UM carrier to later purse that driver for the damages it pays.
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Auto injury attorneys at Brumbelow Drechsel in St. Petersburg, Florida, represent clients throughout Florida and most frequently the Tampa-St. Petersburg metro area, including Clearwater, Tarpon Springs, Palm Harbor, Largo, St. Petersburg, Tamapa, Lakeland, Pinellas Park, Duneden, Safety Harbor, St. Pete Beach, Madiera Beach, Treasure Island, Kenneth City, Seminole, Spring Hill, Holidy, New Port Richely,and Odesa; from counties including Pinellas County, Hillsborough County, Citrus County, Manatee County, Sarasota County, Hernando County, Polk County, and Pasco County.
