WHY PURCHASING UNINSURED MOTORIST COVERAGE IS SO IMPORTANT
by: Musa K Farmand
Many Floridians are in the dark about the benefit of uninsured motorist coverage. Many believe it is just an extra expense they want to avoid when purchasing automobile insurance. Uninsured motorist coverage, otherwise known as “UM” coverage, is, however, one of the most important types of automobile insurance one can purchase. The reason is simple: UM coverage is designed to help you in the event someone causes a wreck which results in injury to you, and that someone either has no insurance or not enough to cover the value of your case. This is where UM coverage comes into play: the UM carrier stands in the same shoes as a liability carrier for the person who caused the wreck.
Under Florida law, when you purchase automobile liability coverage to help you in the event you cause an accident that results in liability to you for injuries caused to another, you automatically obtain UM coverage in the same amount as the limits of your bodily injury liability coverage. So, for example, if you want to protect yourself from an accident that you may cause, and you purchase, e.g., $100,000 bodily injury liability limits, the law provides that you will obtain the same amount ($100,000) in UM coverage.
However, the law also provides that the insured may elect to reject UM coverage, or to lower his limits. In order to do so, the insured will have to sign a written rejection form, approved by the State of Florida. The form must comply with the state’s requirements, including making it clear and understandable the insured is waiving or limiting important insurance coverage. Unfortunately, many people waive or limit their UM coverage in order to save money. In the long run, however, it could easily cost you money.
Let me give you a scenario as to how UM coverage applies. Let’s say that you are sitting at a stop sign. You get rear-ended by a vehicle going 40 miles per hour. You are injured, require hospitalization and subsequent treatment. The doctor ultimately finds that you have an injury to one of the discs in your spine, consequently requiring surgery. The person who caused the wreck only has $50,000 in insurance coverage, not enough under these circumstances to fully compensate you for your injury – particularly in light of the surgery. If the defendant’s insurance company offers its $50,000 limits, that would probably not be enough to fully compensate you. Where else can you turn for more insurance coverage? The answer is your own UM coverage. Let’s say that when you purchased automobile insurance, you obtained $100,000 in bodily injury liability limits. Unlike many other people, you took advantage of the $100,000 UM coverage you automatically obtain under Florida law. In other words, never reject – in writing – UM coverage. What that means under our accident scenario here is that you can now make a claim under your insurance policy for those $100,000 limits. Your insurance company would probably be in a position to pay the majority if not all of that $100,000 limit under your UM policy.
In essence, UM coverage is a very important feature of your automobile insurance coverage. You should never reject UM coverage. Even though it might cost you a little bit more in insurance premiums, it could be a huge benefit in the long run. Unfortunately, most of us will encounter a car wreck at some point in our lives. Hopefully none of those will result in any injury, much less a serious one. However, if one does, and they often do, please do not hurt yourself further by failing to adequately protect yourself and your family.
