Why You Should Purchase Uninsured/Underinsured Motorist Coverage
We live in a time when “survival of the fittest” is the name of the game. If you
don’t protect yourself, you may find that no one else will – even if they’re legally
required to.
Take automobile insurance. Ohio has had financial responsibility laws on the books
for many years. These laws require all Ohio motorists to obtain automobile liability
insurance in a minimum amount of $12,500 per person or $25,000 per accident, or
to self-insure through a financial responsibility bond or other statutorily- approved
means.
But what if the driver who hits you hasn’t complied with the law and is driving
uninsured? Or what if you sustain serious or catastrophic injuries that result in
financial loss to you in far greater amounts than the $12,500 minimum liability
limits of the other driver?
In these instances, assuming the other driver does not have a hidden fortune that
can be recovered through a lawsuit, the only way you can protect yourself is by
purchasing uninsured/underinsured motorist coverage (“UM”).
Up until October 31, 2001, Ohio’s UM statute required all insurance companies to
offer UM coverage in every automobile liability policy sold to Ohio motorists. However,
in an effort to defeat consumerfriendly decisions of the Ohio Supreme Court, the
legislature amended that statute so that the insurance companies no longer have
to offer this coverage to you– though, of course, they will still sell it to you
if you request it.
As a driver purchasing an automobile liability policy you should purchase UM in
the highest amount you can afford. If you only purchase $12,500 in UM, you will
only be able to access that amount if the other driver has less than $12,500 in
liability insurance available to you. On the other hand, if you purchase $100,000
in UM, and the at-fault driver has liability coverage of $12,500, then you will
be able to recover the $12,500 from that other driver and up to $87,500 from your
own UM policy.
Some people ask why they need UM coverage if they have good health insurance. The
answer is that health insurance only covers medical bills – and probably only a
portion of those after paying a deductible. “Damages” from an accident, however,
include more than just medical bills – they include lost wages, loss of earning
capacity, pain and suffering, and loss of the ability to do or to enjoy things you
can no longer do because of the accident. Also, health insurance does not help your
family if you are killed by an uninsured driver.
UM is especially important for motorcyclists to carry. It may be a little more expensive,
as the risks motorcyclists face are greater than those faced by other motorists.
But the expense is worth it if – God forbid– you’re hit by an uninsured or underinsured
motorist.
Call your insurance agent now. Ask him or her to verify in writing that you have
UM coverage, and, if you don’t, ask that you be covered immediately.