Jeffrey Beausay

Archive for the ‘Uninsured/Underinsured Motorist Coverage’ Category:

Uninsured/Underinsured Motorist Coverage: What is it?

Suppose you are injured in an auto accident caused by the negligence of another driver, and the driver at fault does not have automobile liability insurance. Hopefully, in this situation, you bought uninsured motorist (UM) coverage when you obtained your own automobile insurance. If so, you are entitled to recover your damages from your own insurance company, under the uninsured motorist coverage.

Now suppose the driver at fault has insurance, but only has the state minimum coverage, $12,500 per person, $25,000 per accident. If your claim is worth more than $12,500, the driver at fault is underinsured. Hopefully, in this situation, you bought underinsured motorist coverage (sometimes referred to as UIM or UDM coverage), which will pick up where the liability coverage leaves off. If, for example, your UM coverage limit is $50,000 per person, you can recover your damages up to that limit: $12,500 from the liability carrier; $37,500 from your UM carrier.

Bottom line: UM coverage is very good coverage to have. And believe it or not, it’s not that expensive, so get it if you can, and ask your agent how much you should have.

UM: Other Owned Vehicle

If you own two cars, but only insure one of them, you cannot recover uninsured/underinsured motorist (UM) benefits if, when you were injured, you were occupying the car you chose not to insure. To guard against this, most insurance companies have what is called an “Other Owned Vehicle” exclusion in their policies. These exclusions are enforceable, and have been upheld by the Ohio Supreme Court. See Lager v. Miller-Gonzalez, 120 Ohio St.3d 47, 2008-Ohio-4838.

Tags: Uninsured/Underinsured Motorist Coverage

Uninsured/Underinsured Motorist Coverage: Amount available for payment; (Webb v. McCarty)

Suppose you and three passengers are severely injured in a motor vehicle accident caused by the negligence of another driver. The driver at fault has a $50,000/$100,000 policy, which means that the policy limit is $50,000 per person (regardless of how badly the person is injured), and $100,000 per accident (regardless of the number of people injured). Since there is only 100,000 available for all four injured parties, let’s say the liability insurance company pays each $25,000.

Now we look to your policy, which should have underinsured motorist coverage (if you were smart enough to buy it). Let’s say you also have a $50,000/$100,000 policy. Are you entitled to the additional $25,000 available under your UM coverage? In other words, even though your limits are the same as the driver at fault, you only received $25,000. Are you entitled to an additional $25,000 from your insurance company?

Answer: Yes. In Webb v. McCarty, 114 Ohio St.3d 292, 2007-Ohio-4162, the Ohio Supreme Court held that you are entitled to an additional $25,000 from your insurance company.

Lesson: Buy as much uninsured/underinsured motorist (UM) coverage as you can reasonably afford, and consult with your insurance agent about how much you should have. There are many, many uninsured and underinsured drivers out there. UM coverage is not that expensive, especially compared to the other coverages you get with a typical insurance policy. Hopefully you will never need to use it, but if you are severely injured in an accident, you’ll be glad you have it.

Jeff Beausay, Trial Lawyer