Cape Cod Winter Driving: Be Protected and Know Your UM Coverage
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You're on your way to the Cape Cod Mall. You're stopped at a red light and are rear ended by a bubble gum chewing 19 year old talking on her cell phone and putting on mascara looking in her rear view mirror. She's driving a 5 year old VW Jetta with $20,000/$40,000 in bodily injury coverage, the minimum mandatory coverage under our Massachusetts No-Fault law.
On the other hand, you end up with a herniated disc at L3-4 and a fractured tibia. You are a salesman, and are out of work for two months. You have no disability coverage. You may need back surgery, but may also experience lower back pain indefinately. Your no-fault pain and suffering claim is estimated to be worth around $200,000. However, the at fault glamour girl only has that 20k in coverage for your injuries. WHAT DO YOU DO?
Well; you had better hope that your insurance agent had you purchase sufficient Uninsured/Underinsurance (UM) coverage. I can't tell you how many times injured folks come in to my office with a similar story and also have the mandatory minimum of 20k in UM coverage. "I thought it was an easy way to save a few dollars" many say.
However, your UM coverage is what protects you when you are injured by an at fault operator that does not have sufficient bodily injury coverage to compensate you for your injuries. In the above scenario, if you had 100k in UM coverage, you would be able to recover 20k from the other driver, and 80k (up to your 100k in coverage) from your own carrier. If the carrier and your lawyer cannot agree on your case value, it goes to binding arbitration. If you had $250k in UM coverage, you could potentially recover up to 230k above the 20k possessed by the at fault operator; again, up to the limits of your UM coverage. Importantly, if you only have the mandatory minimum of 20k in UM coverage, your recovery is capped at 20k, regardless of your injuries.
Many people tell me they don't discuss the amount of coverage they have on their vehicles with their insurance adjuster. Many say they don't even know what UM coverage is. Well...you don't want to find out after you've been injured in a car accident. Talk to your agent and make sure you are protected.
I'll be happy to answer any questions that readers may have regarding their no fault auto insurance coverage.