What is Uninsured or Underinsured Motorist Coverage?

Author: Attorney Daniel Villalobos

Uninsured Motorist insurance coverage is one of the most important types of car insurance coverage that a person can buy. UM covers you in the event that a person hits you and causes injury but fails to have insurance. In such an event, if you suffer bodily injury, medical bills in excess of PIP, lost wages in excess of PIP, pain and suffering, disability, or impairment of ability to earn future wages, then your insurance will pay your claim (up to the policy limits) as if the defendant’s insurance company would have paid the claim if the defendant would have purchased bodily injury coverage. In addition, because our client purchased stacked UM coverage, then she can use the UM benefits available on every car on the policy. This sounds confusing so let’s see some examples.

Scenario 1

A hits B and A is at fault. A has no insurance. B has two cars both of which have NON STACKED UM benefits on the policy in the amount of $50,000. Because B purchased non-stacked UM benefits he can only collect up to $50,000 from his insurance. If B’s injuries are worth $100,000 or more then B can only collect $50,000 from his own insurance and then B’s own insurance will (at their own discretion) go after A to get their money back.

Scenario 2

A hits B and A is at fault. A has no insurance. B has two cars both of which have STACKED UM benefits on the policy in the amount of $50,000. Because B purchased stacked UM benefits he can collect up to $100,000 from his insurance (Both UM benefits of $50,000 stack on top of each other). If B’s injuries are worth $100,000 or more then B can collect $100,000 from his own insurance and then B’s own insurance will (at their own discretion) go after A to get their money back. Scenario 2 represents the coverage that our client purchased.

If you have been injured in an auto accident, contact any of our Florida car accident attorneys to discuss your claim.