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Uninsured Motorist Bodily Injury Coverage is similar to UMPD (Uninsured Motorist Property Damage), but instead looking for property damage payments, you will be looking for payments because of bodily injuries. Note that these two coverages are sold together, so if you have one, then you have the other.
Your medical payment coverage or PIP will cover your medical expenses up to the amount of the limit that you purchased. Everything above and beyond that will be covered under the Uninsured Motorist Bodily Injury portion.
It is important to mention that everyone in the vehicle is entitled to this coverage (driver and passengers, and that the limits will apply individually (they will not be added together) unless noted in the policy.
Usually limits under the Uninsured Motorist Bodily Injury portion are much higher, anywhere from $50,000 to $250,000, instead of your Medical Payments and/or PIP limits of $5,000 to $10,000.
Here, your insurance carrier will have to determine who is at fault, and if the other party had or not a liability policy. This can take time, (depending of how difficult the accident is), and how many parties are involved. Also, remember this is not an all or nothing claim. For example, in an accident where there are three parties involved: A, B and C. Let us assume A is not at fault, but B and C are (split 50%).
Let us further assume that B has insurance but C does not. B and C each owes 50% of all damages. B would have to pay 50% of all damages to A. C does not have insurance, so A’s UMBI policy would have to cover the remaining 50%.
Uninsured Motorist Bodily Injury Coverage will put you in the position of a third party claimant, yet reserving your rights as an insured. As mention above, you will have the “joker of the deck” or the power of bad faith lawsuits (read more on bad faith).
Medical Payments and Personal Injury Protection are very restrictive coverages and virtually all those restriction are lifted once you have a UMBI claim. You still have to document your claim, and allow the carrier to look into your medical history to move forward.
Because they are paying you what the responsible party owes you, they will have to pay for loss wages, including the time going to and from the doctors. Mileage (federal rate for 2006 was 44 cent per mile) and gas to go see your doctor will also be included. THIS IS only IF YOU ASK!!!! Many adjusters will “FORGET”.
Once you settle the game is over. So ASK!!!! My view is if they are going to nickel and dime you, then you should nickel and dime them!!!!
I have discussed how in Montana and in Arizona you could recover two times or three times the amount of your medical bills. When you have an UMBI claim, your own insurance company will have to pay the bills twice, first time to your doctor (if they have not been paid by your health insurance), and a second time to you.
Many people decide that this coverage is not necessary, and it really should not be. We all should be driving insured; so why the need for under/uninsured coverages? However, we do not live in a perfect society.
Nearly 1/3 of drivers in the U.S. do not carry any insurance. Some communities in different parts of the country have a ratio of ˝ or more uninsured drivers. I would not take the chance and insure against that risk (Casinos certainly would not with that kind of odds).
Uninsured Motorist Bodily Injury will not cover your vehicle damages. For that you need Collision Coverage. Click here to learn more.
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