At least twice a month, friends and clients ask us about an accident where they were hit by someone that did not have insurance or ran off after the accident. Almost always, they have been told by their insurance that they have no coverage because they did not buy Full Coverage.
Most people give up after they call the Agent’s office and are simply told there is no coverage because they only had Liability Coverage. Remember that Agents don’t make money educating you on your coverage. They make money-selling policies. So don’t just depend on what you hear on a telephone call. Always communicate in writing.
Many people do not understand what is Uninsured/Underinsured motorist (UM/UIM).
This type of insurance covers your expenses for hit and run accidents or for damages caused by drivers who did not have enough insurance to cover the damage.
Insurance companies HAVE TO OFFER The UM/UIM. And, unless the customer rejects this coverage, it is included. Insurance companies must give a copy to the client with all of these terms written and explained. Again, if you did not sign a rejection of the UM/UIM coverage, you are covered.
I have seen some instances where the agent’s office forged the customer’s signature.
There are two types of UM/UIM. One being the bodily injury, which covers medical bills, lost wages, pain and suffering, disfigurement and permanent or partial disability with no deductible. Second, Property damage UM/UIM that pays for auto repairs, a rental car, and any other damage to the vehicle.
UM/UIM insurance covers family members, passengers, or the driver who was given permission to drive the vehicle.