What is UM/UIM?
UM stands for uninsured motorist and UIM stands
for underinsured motorist. They are usually listed together as
UM/UIM.
If a person has the state minimum liability policy
of 10/20, then the most UM/UMI they may obtain is 10/20. If their
insurance policy is a 25/50, then they may also have UM coverage
up to those liability limits. Therefore, if a person does not
have liability coverage, as their policy lapsed, then they will also have no UM coverage. Note that
in UM/UIM coverages there are only two numbers and not three.
This is because there is no property damage portion attached to
UM coverage. Your property damage is covered under your comprehensive
and collision coverage. This is also known as comp and collision.
In
other states, the UM/UIM coverage may also cover property damage.
However, in Oklahoma, if a person has an accident and it is another
person’s fault and they only have liability and UM/UIM but
do not have any comp and collision, then that person cannot receive
compensation from their own insurance company for the property damage
to their own vehicle.
Just as liability, the first number, for example,
10 means $10,000 and is the amount of money available to any one
person in the accident. The second number of 20 means $20,000
and that is the total amount that the insurance company will pay
for any one accident, no matter how many people are injured.
It is important to note that you should notify any UM/UIM carrier of a potential
claim. One reason for this is that a failure to notify the UM/UIM
carrier may result in them denying the claim.
One very important requirement of UM/UMI is that you may not
use your UM/UMI coverage if you settle with the liability carrier for less than
full policy limits or if you settle with the liability carrier for policy limits plus
fail to give your own insurance the proper notices.
The amount of statutes and case law involving UM/UIM
claims is substantial. To provide a full and complete discussion
about UM/UIM coverage here is impractical.
More and more people are driving without
liability insurance and as a result it is important now, more
than ever, to make sure you are covered. It is so important that
state law requires you to sign a separate rejection sheet if you
choose not to carry it. I would strongly encourage you to call
your insurance agent to determine if UM/UIM is right for you.
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