Automobile Insurance Coverage Info

Should I have “UnderInsured” automobile insurance coverage in addition to “Uninsured” automobile insurance coverage?

YES! The Missouri Motor Vehicle Financial Responsibility Law requires every automobile to be insured for at least $25,000.00 liability insurance coverage per person and $50,000.00 per accident.

Columbia Auto Insurance CoverageMore often than not, the person that hits and injures you will not be completely uninsured, but they will have the minimum required $25,000/$50,000 liability insurance. What if you are seriously injured and need a $30,000.00 surgery? The other drivers’ automobile insurance company at most will pay you the policy limits of $25,000.00 which of course, would not be enough money to cover your damages. Will your Uninsured Motorist (UM) Coverage help you? No, because the other fellow had automobile insurance, just not enough insurance to protect you in this situation.

You need Underinsured Motorist Coverage (UIM).

Underinsured Motorist Coverage on your policy will provide liability coverage over and above the insurance coverage of the motorist that hit you. If you have Underinsured Motorist Coverage of $100,000 per person and $300,000 per accident, then in the above example, the other drivers’ automobile insurance company would pay $25,000.00. Your insurance company would pay up to $75,000.00 to cover your claim because the other driver did not have enough insurance, thus he was “underinsured”.

How much in Underinsured Motorist Coverage (UIM) should you have?

This depends on a number of factors such as what other types of insurance you have: Do you have health insurance?  How much medical payments coverage do you have? What are your personal assets? How much automobile insurance can you afford?  Therefore, you should be sure to discuss with your insurance agent your specific needs. At a minimum, if your Uninsured Coverage is more than $25,000.00 your Underinsured Coverage should be at least as much as your Uninsured Coverage in Missouri.

We believe very strongly that the motor vehicle financial responsibility law should require coverage of $100,000.00 per person and $300,000.00 per accident which would make the issue of Underinsured Coverage a little less important. All too often, however we see clients with severe injuries who did not have enough (if any) Underinsured Motorist Coverage (UIM) and are only able to collect $25,000.00, the policy limits, of the other driver’s liability coverage.