Volume 1, Issue 5                    The Traut Firm eNewsletter               April, 2005            www.trautfirm.com

If you are like most drivers, you probably have only a vague understanding of your automobile insurance coverage. Almost 20 years ago the California legislature mandated that underinsured coverage (UIM) must be included as a provision along with uninsured coverage (UM). That is, if you now have UM coverage, then you also have UIM coverage.

How Do I Know If I Have It?

Unless your insurance agent had you sign a waiver of UM/UIM coverage, you have it. You are entitled to have your UM/UIM policy limit in an amount up to that of your liability coverage limit. But you should make certain that it is equal because there are still plenty of uninsured and underinsured drivers on the road. Increasing the limit is inexpensive and it makes no sense to insure yourself and your passengers for less than the guy who plowed into you.

How Does It Work?

Essentially, UIM coverage works like UM coverage. Should you be injured in a vehicle-related collision by an underinsured motorist, then you are entitled to receive compensation for all damages not covered by the policy limit of the underinsured motorist. For example, if you are severely injured by a motorist with a $15,000 liability limit, but you have a $100,000 UIM limit, then you would be entitled to $15,000 from the underinsured motorist’s insurance and $85,000 (the difference between the underinsured’s liability limit and your UIM limit) from your own UIM coverage.

Your UM/UIM coverage applies to all of your co-habiting relatives and passengers. It could apply in numerous circumstances that might surprise you. For instance, it would apply if, as you stood on a sidewalk, you were hit and injured by a rock that fell off of a passing uninsured, underinsured or even unidentifiable vehicle.

As you might imagine, the coverage issues can become complex. However, the potential for coverage can be quite extensive. When in doubt, check it out. You can always call on us.

For a free case evaluation just click to our ==> Case Evaluation form.  Or simply call toll free 1-877-Traut-Firm.

The Traut Firm
"When You Mean Business"