Most drivers assume that if someone causes a serious car accident, the at-fault driver’s insurance company will pay for the damages. Unfortunately, that assumption can leave accident victims facing overwhelming medical bills, lost income, and financial hardship.
Our office recently began representing a client who was seriously injured in a motor vehicle collision. While the facts of the case are still developing, one issue became immediately clear: the at-fault driver carried only minimal insurance coverage. As a result, there may be significant limitations on the compensation available unless additional Underinsured Motorist (UIM) coverage exists. Situations like this occur far more often than most Pennsylvania drivers realize.
If there is one insurance coverage we encourage every driver to review, it is Underinsured Motorist Coverage.
What Is Underinsured Motorist Coverage?
Underinsured Motorist Coverage, commonly referred to as UIM coverage, is protection that comes from your own automobile insurance policy.
It applies when the driver who caused the accident has insurance, but not enough insurance to fully compensate you for your injuries and losses. Pennsylvania law requires insurance companies to offer UIM coverage, but drivers are permitted to reject it in writing. As a result, many motorists unknowingly drive without this important protection.
Pennsylvania’s Minimum Insurance Limits Are Surprisingly Low
Pennsylvania only requires drivers to carry bodily injury liability coverage of:
- $15,000 per person
- $30,000 per accident
Those limits may sound reasonable until you consider the cost of modern medical treatment. A single emergency room visit, ambulance transport, diagnostic testing, or surgery can quickly exceed $15,000. Serious injuries often result in medical expenses, lost wages, rehabilitation costs, and long-term pain and suffering that far surpass the minimum coverage available.
In other words, a driver can legally carry insurance and still not have enough coverage to compensate someone they seriously injure.
A Real-World Example
Imagine you are stopped at a red light when another driver crashes into your vehicle.
Your injuries require surgery and months of physical therapy. Your total damages are $150,000.
The at-fault driver carries Pennsylvania’s minimum policy limits and their insurance company pays $15,000.
Without UIM coverage, you may have no practical source for recovering the remaining $135,000.
With sufficient UIM coverage on your own policy, however, your insurance can step in and help bridge that gap. That is exactly why this coverage exists.
Why This Coverage Is So Important
Many people focus on protecting others when purchasing auto insurance. They increase liability coverage to protect their assets if they cause an accident.
However, Underinsured Motorist Coverage protects you and your family when someone else’s insurance is inadequate.
This protection can apply when:
- You are injured by a driver carrying minimum insurance
- Multiple people are injured in the same crash
- Your medical expenses exceed the at-fault driver’s policy limits
- You suffer significant lost wages or permanent injuries
- A family member covered under your policy is injured
Given how many drivers carry only minimum coverage, UIM protection is often one of the most valuable parts of an automobile insurance policy.
The Cost Is Often Much Lower Than People Expect
One of the most common misconceptions is that increasing UIM coverage will dramatically increase insurance premiums.
In reality, many drivers can significantly increase their UIM limits for a relatively modest additional cost. While premiums vary by insurer and driving history, the difference between minimal coverage and meaningful protection is often surprisingly small compared to the financial protection it provides.
For many families, it is one of the most cost-effective insurance decisions they can make.
Reviewing Your Policy Today Could Save You Tomorrow
Most people do not think about Underinsured Motorist Coverage until after an accident occurs. Unfortunately, once the collision happens, it is too late to add the protection.
We encourage Pennsylvania drivers to review their automobile insurance policies and confirm whether they have UIM coverage, whether it is stacked, and whether the limits are sufficient to protect their family.
A serious accident can happen in an instant. The difference between recovering fully and facing financial uncertainty may come down to a coverage option that costs only a few dollars per month.
Contact Kats Jamison & Associates
If you have been injured in a Pennsylvania car accident and are unsure whether Underinsured Motorist Coverage may apply to your case, the attorneys at Kats Jamison & Associates can help.
Our team regularly assists accident victims in identifying all available sources of compensation, including claims involving uninsured and underinsured motorist coverage. We can review your policy, explain your rights, and help you pursue the recovery you deserve.
Contact Kats Jamison & Associates today for a free consultation.
