Avera Law Firm

The Avera Law Firm Blog is designed to update clients, vendors, and other interested persons regarding law firm news, personnel, legal issues, and legislative issues. The firm management welcomes posts and questions to the blog as an interactive means to provide information to the public.

Saturday, March 01, 2008

A Nightmare Without UM

In our February 23, 2007 article, we explained how UM (uninsured motorists) coverage works. We revist this issue to illustrate how important this coverage is based on a horrible experience an elderly couple recently experienced.

A new client called Avera & Smith early this year regarding a horrible auto crash in which she was involved. Let's call her Mrs. Jones.

Mrs. Jones is elderly. Both she and her husband are retired. They own two vehicles with one of the larger national auto insurers. The have bodily injury coverage on their vehicles in the amount of $100,000 per person and $300,000 per accident. That is the coverage that comes into play when one of the them causes a crash and a claim is brought against them.

Florida law requires that their insurance company sell them uninsured motorists coverage in an amount equal to their bodily injury limits. So, in the Jones' case, they would have $100,000 of uninsured motorists coverage times the number of cars they insure. So, because they have 2 cars, they would have $200,000 in uninsured motorists coverage.

Remember, uninsured motorists coverage comes into play when the person who injures you either doesn't have any bodily injury coverage or not enough.

Early in January, Mrs. Jones suffered very severe injuries when another driver drove through a stop sign at high speed. This driver only had $10,000 of bodily injury coverage. Her injuries required an extended hospital stay and weeks of recovery at home. Her medical bills continue to come accrue. Mrs. Jones and her husband hired A&S to assist her.

Unfortunately, our investigation disclosed that Mr. Jones had signed a form with his insurance company rejecting uninsured motorists coverage. So instead of having $210,000 in coverage available to her (the $10,000 in bodily injury coverage and $200,000 in UM coverage) Mrs. Jones only had $10,000. This was grossly insufficient to cover all the costs, expenses, and trauma of what she has gone through.

In discussing this with Mr. Jones, he really had no recollection of signing the form. He acknowledged that it was his signature. Like many people, he likely signed a bunch of forms and simply relied on his agent.

UM coverage is one of, if not the cheapest type of coverage you have on your policy. Over the years, we have recommended to friends and clients that if an agent recommends that you reject UM or select lower limits, you should find another agent.

Do yourself and your family a favor today. Check your policy. If it says you have rejected UM coverage, have "non-stacking" UM coverage, or have selected lower UM limits, call your agent and demand that they give you all of the UM that your policy permits. No other coverage will protect you when you are injured by a driver who doesn't have insurance or doesn't have enough.

If your agent tries to talk you out of it, find another agent. The premium difference is minimal and the coverage protects you and your family.

If you have questions about uninsured motorists coverage and how it protects you and your family, feel free to go to our website and submit a question.

posted by Mark Avera at 3/01/2008 08:23:00 AM

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