“What do I do if I get hurt in a car accident?” The first thing your lawyer needs to know is the amount of the other driver’s bodily injury liability coverage, commonly referred to as BI coverage. If the other driver has a 20/40 policy, then $20,000 is the most that driver’s insurance company will pay you. If, God forbid, you suffer broken bones, permanent disability, or death, you (or your survivors) are stuck with that $20,000 maximum, even if your case is worth hundreds of thousands of dollars. The only way to get more may be to chase after the driver’s personal assets, such as a house or car. Most people who carry only 20/40 policies don’t have enough money to pay a substantial personal injury claim.
"But how do I protect myself from someone with a 20/40 policy?” Purchase "underinsured and uninsured motorist” (called “UIM”) coverage under your own auto insurance policy. UIM coverage means that your auto insurer will compensate you for injuries caused by someone who has a 20/40 policy or no BI coverage. Purchasing 100/300 ($100,000 per person, $300,000 for all victims per accident) or even 250/500 coverage is relatively inexpensive. Ask your agent.
Assume you suffer a broken leg due to the negligence of another driver. Your claim is potentially worth $150,000. The other driver has the minimum 20/40 policy. His/her auto insurer offers you $20,000 immediately. That company is now off the hook. If you have 100/300 UIM coverage, however, then your auto insurer may pay up to another $80,000 ($100,000 minus the other driver’s $20,000). If the negligent driver has no auto insurance (perhaps his/her policy expired), then $100,000 in UIM benefits is available to compensate you. If you have 250/500 UIM coverage, then you have an even larger “pot” of money available under your own policy.
If you and your auto insurer disagree on the value of your broken leg, you don’t file a lawsuit; under the terms of your policy, an arbitrator will decide the value of your claim. Arbitration may save you thousands of dollars in litigation expenses, and your claim can be resolved in months rather than years.
Need to talk to a lawyer? Turn to the attorney you know you can trust — Steven B. Rosenthal. Call or email The Rosenthal Law Firm for your free consultation today.