Kentucky law requires drivers to carry a minimum of $25,000 per person and
$50,000 per accident in auto liability insurance coverage. Although most people
do have auto insurance, many do not purchase more than the minimum amount
required. Underinsured motorist coverage (also known as “UIM” coverage) applies
when the at-fault driver’s insurance coverage is not enough to cover all of your
injuries. Car accidents often result in serious injuries, such as broken bones,
back, neck and spine injuries, and severe head trauma. These injuries often
require expensive medical care, including emergency room treatment, hospital
admissions, surgery, x-rays, CT and MRI imaging and physical therapy. The
medical bills alone often times can exceed your PIP benefits and the $25,000 in
liability insurance coverage the at-fault driver might have. And that is before
your pain and suffering and lost wages damages are even considered. UIM coverage
kicks in to provide you with additional compensation once the at-fault driver’s
insurance is exhausted. UIM coverage is a benefit provided to you by your own
insurance company. Unlike uninsured motorist coverage, your insurance company is
not required to offer UIM coverage to you when you buy your liability insurance.
In other words, you must specifically tell your insurance company that you want
to buy UIM coverage. Like UM coverage, UIM coverage will provide you with money
for pain and suffering, medical expenses, and lost wages if the at-fault driver
does not have enough insurance money to cover all of your damages. Just like UM
coverage, UIM coverage also applies to any passengers injured in your car, or
anyone driving the car with your permission, such as a child or spouse. Most
people are not aware that their UIM benefits might not be limited to the
insurance on the car they were driving at the time of the accident. For example,
if your family owns multiple cars you may be able to use the insurance for each
individual car to increase the amount of money you can recover. This technique
is referred to as “stacking” the insurance to double, triple or further increase
the money available to you. If you have questions about how underinsured
motorist coverage works, or if you were involved in an accident with another
driver that did not have enough insurance to cover your injuries, please contact
personal injury and auto accident attorney Chris Haden at The Haden Law Office.