Why You Need Underinsured Coverage

Some of the toughest news we have to deliver to our clients is when the defendant who hit them in a car collision only carries $50,000 in insurance money. It won’t be enough to cover their catastrophic injuries following a car crash. Some people don’t know until it’s too late that they can protect themselves and their family members from this situation by purchasing better underinsured motorist coverage.  

To be clear, at Garmey Law, we do not sell insurance. However, we highly recommend you call your insurance agent to obtain the maximum amount of liability and underinsured coverage you can afford to protect yourself and your family members.

How Does Underinsured Motorist Coverage Work?

Underinsured/uninsured motorist insurance (often called UIM) is a type of insurance included in your policy that can provide you additional coverage if the person who injured you does not carry enough insurance to cover your damages. 

If someone crashes their car into you, their liability insurance should cover your injuries up to their policy limit. The bad news is that Maine’s minimum bodily injury policy limit is only $50,000. That means someone could hit you and cause life-changing injuries that keep you out of work for years or even the rest of your life – – and yet you might only be able to recover $50,000 in damages.

That is where UM/UIM Coverage comes in. Suppose you have a car insurance policy with policy limits greater than the amount available under the other driver’s policy. In that case, you can collect the first $50,000 from the person who hit you and then bring a claim against your insurance company to cover the gap.

Commonly Asked Questions About Underinsured Coverage

Won’t using my UIM / gap coverage increase my premium?

Most likely not. Your insurance premium should only go up if you cause a car collision. If you are using your UM/UIM coverage, it is because you are the victim of a crash. You should confirm this with your insurance agent. 

What if the person who hit me drove away or does not have insurance at all?

Your UM/UIM coverage will still protect you. I encourage all of my friends who jog or ride a bicycle to increase their liability & UM/UIM Coverage because it covers you if you are the victim of a hit-and-run collision.

I don’t run. I drive a motorcycle. Should I still raise my limit?

YES.  Sadly, motorcycle crashes are some of the most catastrophic injuries we see because there is no protection between you, the car that hits you, and the road. The state minimum liability limit of $50,000 might only be a drop in the bucket for what you deserve if a negligent driver crashes into you.

Won’t it cost a boatload to increase my car insurance?

You would be surprised. I called my own insurance agent and asked how much it would cost to raise my insurance limit from $50,000 to $300,000, and it was less than $10 a month. 

When should I call my insurance agent?

There is no time like the present. Heaven forbid you are in a collision – you need this increased insurance at the time of the incident.

Who should I call if I am the victim of a car crash?

Contact us online or call our dedicated team at 899-4644. We are standing by to comfort you and get you and your loved ones justice for the actions of negligent and distracted drivers.