Uninsured motorist insurance (sometimes referred to as underinsured motorist, UM, or UIM insurance) is a very important coverage that all vehicle owners should purchase as part of their automobile insurance policy.
But what is it?
In short, uninsured motorist insurance is coverage that will pay you for certain types of damages you incur when another driver, who is responsible for causing an accident, has no liability insurance or not enough liability insurance to cover all of your damages (medical bills, pain and suffering, lost wages, etc.). In other words, if you have UM coverage, and the following three conditions are met:
- you are not “at fault” for the accident;
- you have damages resulting from the accident; and
- the at-fault driver has either no liability insurance or liability insurance that does not cover all of your damages,
you are very likely entitled to UM benefits from your auto insurer (in Oklahoma, at least. Many other States have different rules that apply to UM coverage).
Why Is Uninsured Motorist Coverage Important?
In Oklahoma, it is estimated that one in four drivers on the road have no liability insurance coverage whatsoever. In fact, Oklahoma consistently ranks near the top of the list of states with the highest percentage of uninsured drivers. Further, many drivers that do have liability insurance have the minimum amount of coverage allowed by law ($25,000). If you happen to be involved in a collision with such a driver and you do not have UM coverage, there may be little or no insurance funds available to pay for your damages.
Uninsured Motorist Coverage Misconceptions.
Given that UM coverage is designed to pay for bodily injury-related damages caused by a motor vehicle accident, many people incorrectly assume that such coverage is unnecessary because their health insurance will cover all injury-related expenses. But even if you have health insurance, you will likely incur out-of-pocket expenses for co-pays, deductibles, and prescription costs, as well as expenses for any medical care that your health insurance company does not cover. Also, your health insurance company will not compensate you for physical or mental pain and suffering, disfigurement (such as scarring), lost wages, and other types of damages. However, UM insurance does cover such damages.
In sum, paying for uninsured motorist coverage is money well spent. Even so, Oklahoma UM law is quite complex, and most people will need an experienced attorney to help them navigate the claims process. Notably, several nationwide studies have shown that accident victims who hire an attorney to help with their claim recover far more money than those who do not hire an attorney.
Don’t be misled by insurance company slogans. The insurance company is not “on your side,” and you’re certainly not “in good hands.” Insurance companies exist to make a profit, and they do this by paying as little as possible on claims.
If you have been involved in a motor vehicle accident and have questions about the coverages that may apply, contact Stride Law today.