THE IMPORTANCE OF “UM” AND “UIM” INSURANCE.

*The purpose of this article is for sharing information only and is not meant to establish any attorney-client relationship and is not to be construed as legal advice. If you have any specific questions, please contact us through the phone number or email address provided.*

The importance of “UM” and “UIM” insurance

UM = Uninsured Motorist
UIM = Underinsured Motorist

Do you know whether you have UM/UIM coverage? Do you know what the policy limits are? We are often surprised at how many people do not know his or her own insurance policy limits and whether the policy includes UM/UIM coverage as well.

According to the Insurance Research Council, it is estimated that about 15% of drivers in California do not carry automobile liability insurance. The actual number of uninsured drivers is probably much higher than the estimate since the estimate is only based on uninsured motorist claims made to insurance. What does this mean for you?

Number of licensed drivers in California = Over 25.5 million.

Number of potentially uninsured drivers in California = Over 3.8 million.

If you are involved in a motor vehicle collision with one of the MILLIONS of uninsured drivers, your ability to be compensated for your injuries and damages are severely limited. If that driver had no auto insurance, your only recourse may be to go after the at-fault driver personally. But it’s likely that a driver who has no insurance has no assets. That means there’s no one to cover your medical bills, lost wages, and pain and suffering.

If your insurance includes UM coverage, then you at least have some source of compensation available to you.

Even when the other party does have insurance, it may not be enough to cover your losses. In California, the minimum level automobile insurance required, as set forth by California Insurance Code §11580.1, is the following:

$15,000 for injury/death to one person;
$30,000 for injury/death to more than one person; and
$5,000 for damage to property.

These are very low limits considering how expensive medical treatments and vehicle repairs can be these days. If you miss any time from work or have significant injuries that require extensive treatments or even surgery, the state minimum insurance limit will not be sufficient to cover your losses.

Underinsured motorist coverage can provide you with coverage for your injuries/damages that exceeds these minimum amounts.

However, your UIM policy limit must be higher than the at-fault party’s insurance limits to even apply. For example, if the at-fault driver has a state minimum $15,000/$30,000 policy and your UM/UIM policy limit is also $15,000/$30,000, you cannot recover from your own UM/UIM policy. In California, UM/UIM policies do not “stack” on top of the at-fault party’s insurance. In fact, your UM/UIM will claim a credit of the at-fault party’s liability insurance policy limit paid out against your UM/UIM policy limit. Additionally, you must fully exhaust the at-fault driver’s liability insurance policy.

For example, you have $100,000.00 in UIM coverage and the at-fault party has $15,000 in liability insurance. In this scenario, you will be able to recover from your UIM, assuming you have received the full $15,000, the policy limit, from the at-fault party’s insurance. Your carrier will claim a deduction of the $15,000 received from the at-fault driver’s insurance against your own UIM policy limit. This means you can recover up to $85,000 from your UIM in this scenario.

In the same scenario above, if you recover less than the at-fault driver’s full $15,000 policy, your own insurance carrier will deny the UIM claim as the at-fault driver’s insurance policy limit was sufficient to cover your losses.

What Will Uninsured/Underinsured Motorist Coverage Actually Cover?

Uninsured/underinsured motorist coverage essentially steps into the shoes of the at fault party’s insurance carrier and covers both the economic damages and non-economic damages relating to your bodily injury.

Economic Damages include the following:

Medical bills.
Cost to repair your damaged vehicle.
Rental bill or loss of use of your vehicle.
Lost wages and/or loss of employment.
Other property damage.

Non-economic damages include the following:

Pain and suffering.
Mental and emotional distress.
Physical impairment and disfigurement.
Loss of enjoyment of life and daily activities.

In California, UM and UIM coverages are provided together, meaning you can’t have one and not the other. However, it is possible to waive both UM/UIM coverage and not have any added protection for yourself and your passengers. And to buy additional UM/UIM coverage is only incrementally more expensive than carrying just the minimum. It only takes one claim to make it all worthwhile.

Please check your insurance policy to make sure that you have plenty of insurance coverage, for both liability and UM/UIM. And if you have any further questions, please do not hesitate to contact us at the phone number or email address provided.

무보험자와의 사고, 어떻게 해결해야 될까?

UM- Uninsured Motorist (무보험자)

UIM- Underinsured Motorist (낮은 보험 소지자)

사고는 언제, 어디서, 그리고 어떠한 방법으로 찾아올지 모릅니다. 또한, 사고 가해자가 보험을 소유하고 있는지도 충분히 모를 수밖에 없는 일입니다. 하지만 무보험자와의 사고로 인해 본인이 희생한 시간과 비용에 대한 보상을 돌려받지 못한다면 변호사를 선임하여 문제를 해결해 나아가는 방향이 좋습니다.

Insurance Research Council에 의하면 캘리포니아에 3.8 million(380만 명)의 무보험 운전자가 있다고 합니다. 하지만 등록이 안 된 숫자를 더한다면 더 많은 무보험자들이 시한폭탄처럼 돌아다니고 있습니다. 만약 귀하의 보험이 무보험자 커버리지 (Uninsured Motorist Coverage)가 있으시다면 어느 정도의 보상은 나오지만 대부분의 경우 본인이 더 많은 비용을 부담할 가능성이 높습니다. 따라서 처음 보험을 가입하실 때 무보험자 커버리지 (Uninsured Motorist Coverage)가 포함돼있는지 꼭 확인하시길 바랍니다.

캘리포니아 보험법 §11580.1 에 의하면 운전자는 무조건 최저이상의 보험을 가입하도록 돼 있습니다. 최저 보상액 (Minimum Liability) 보험은 아래와 같습니다.

- $15,000 한명의 부상/사망에 대한 보상금 (Injury/Death to one person)

- $30,000 한명 이상의 부상/사망에 대한 보상금 (Injury/Death to more than one person)

- $5,000 재산의 손상 (Damage to Property)

최저 보상액 (Minimum Liability Coverage)의 금액은 요즘 병원비용과 자동차 수리비용에 비해 높은 금액이 아닙니다. 만약 사고로 인해 장기입원을 할 경우와 개인상해로 오랫동안 직장을 못나가는 경우에는 최저보상액 커버리지(Minimum Liability Coverage)으로 모든 비용을 해결하시기 어려우실 겁니다.

이런 경우를 대비해 보험에 가입하실 때 낮은 보험 커버리지 (Underinsured Motorist Coverage)를 등록하시면 최저 보상액보다 더 많은 보상금액을 받을 수 있습니다. 하지만, 낮은 보험자 커버리지 (UIM)가 성립되려면 귀하의 커버리지가 피의자의 최저보상액 커버리지 보다 높아야 합니다.

예) 상대방의 커버리지가 $15,000/$30,000 일 경우에 귀하의 커버리지는 더 높아야만 커버를 받을 수 있습니다. 만약 귀하의 커버리지가 $100,000일 경우 ($100,000-$15,000), $85,000까지 커버를 받으실 수 있습니다. 혹시나 귀하의 커버리지가 상대방과 같은 $15,000/$30,000 일 경우 커버를 못 받을 가능성이 높습니다.

캘리포니아에서는 무보험자 커버리지(UM)와 낮은 보험 소지자 커버리지 (UIM)을 동시에 가입하게 돼 있습니다. 둘 중에 하나만 등록을 할 수 없기 때문에 귀하의 보험회사와 문의하셔서 어떤 폴리씨(Policy)를 계약하셨는지 확인 하시는 게 좋습니다.

더 자세한 법적 내용, 또는 상담을 원하시면 언제든지 전화주세요.