Wheels Of Grace Magazine

Volume 8, Issue 3

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UNDERINSURED MOTORIST COVERAGE AND WHEN IS IT TRIGGERED WHAT IS AN UNINSURED MOTORIST AND WHEN DOES IT APPLY Uninsured motorist coverage is not mandatory in some states, but it is wise to carry. If you're involved in a serious motorcycle accident caused by an uninsured motorist, it can leave you paying for medical bills for your own injuries, your motorcycle damage and more. A much easier route is to carry uninsured motorist coverage as part of your motorcycle insurance policy and make a claim for damages. WHAT IS AN UNINSURED MOTORIST AND WHEN DOES IT APPLY An uninsured motorist is someone who did not have liability insurance at the me they caused an accident. An uninsured motorist can also be an individual who has liability insurance, but is involved in an accident and their insurance company makes a determina on to deny coverage due to special circumstances. A good example is when the at-fault party's vehicle is covered with liability insurance, but is driven by an individual that is excluded from being able to drive that vehicle per the insurance policy. If you are involved in a hit and run accident, and there is physical contact between your motorcycle and the hit and run vehicle, that vehicle will cons tute an uninsured motor vehicle. You do not have to be a motorcycle driver or passenger in order to be eligible for uninsured motorist coverage benefits. An uninsured motorist policy also applies if you were injured as a pedestrian, bicyclist, or bystander, so long as the at-fault driver was uninsured or underinsured. UNDERINSURED MOTORIST COVERAGE AND WHEN IS IT TRIGGERED Underinsured motorist coverage is triggered when your damages are more than the liability insurance policy of the at-fault party. Should you be involved in an accident where the at-fault party is underinsured, your uninsured motorist coverage automa cally converts into "underinsured motorist coverage". In some states, the at-fault party's liability insurance needs to be "used up" or exhausted before the vic m's underinsured motorist coverage will kick in. Further, the vic m must have more uninsured motorist coverage than the at-fault party's liability insurance. Example: Tom was seriously injured in a motorcycle accident caused by the at-fault party who had liability limits of $15,000 per person only. Tom had underinsured motorist coverage of $250,000 per person with his insurance company. Tom was compensated with policy limits of $15,000 from the at-fault party's insurance. A credit of $15,000 from the at-fault party's insurance was then applied to Tom's underinsured motorist coverage of $250,000. Tom now had available underinsured motorist coverage of $235,000 to obtain, according to proof. If Tom had underinsured motorist coverage in the sum of $15,000 per person, he would not have been able to pursue an underinsured motorist claim a er he obtained the at-fault party's limits of $15,000. Why? In some states, in order to have a viable underinsured motorist claim, you must have more than the at-fault party's liability insurance since the at-fault party's limits are always credited against your underinsured motorist coverage. In some states, an individual is allowed to both obtain the at-fault party's policy limits and "stack" their own underinsured motorist coverage on top of the insurance proceeds they obtain from the at-fault party. In this example, had the accident occurred in a state that allowed "stacking" Tom would have been able to, according to proof, obtain the at-fault party's liability insurance proceeds of $15,000 and "stack" his available underinsured motorist coverage of $250,000 for a total sum of $265,000, rather than the sum of $250,000. Check out the next issue where Susan Handel completes this two part series with informa on on how to get the most protec on out of your insurance policy when you ride. Susan Handel is a lawyer who specializes in personal injury law, with an emphasis on motorcycle accidents resul ng in catastrophic injuries and fatali es. For more informa on visit her on the web at www.handellaw. com or call Toll Free Na onwide 800.564.1164. WheelsOfGrace.com June/July 2016 31

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