Understanding Underinsured Motorist Coverage (UIM) in Utah
Call/Text Utah Car Accident Attorney Jake Gunter at (801) 373-6345 for Help with Your Underinsured Claim
Underinsured Motorist Coverage (UIM) is a critical component of your car insurance policy in Utah, designed to protect you financially when an at-fault driver’s insurance falls short of covering your injuries. Here’s what you need to know about UIM and how to ensure you receive the compensation you deserve.
What Is Underinsured Motorist Coverage in Utah (UIM)?
UIM provides bodily injury coverage that kicks in when the at-fault driver’s liability insurance cannot fully cover your medical expenses or damages. It bridges the gap between the at-fault driver’s policy limits and your total costs.
Example 1: Rear-End Collision in Orem, UT
- Scenario: You are rear-ended on State Street in Orem, UT, requiring knee surgery costing $20,000.
- At-Fault Driver’s Insurance: The driver’s liability policy covers a maximum of $25,000.
- Outcome: After receiving the $25,000 policy limit, your UIM coverage can step in to cover additional expenses.
Example 2: Intersection Collision in Provo, UT
- Scenario: You suffer a severe back injury in a Provo intersection, incurring $80,000 in medical expenses.
- At-Fault Driver’s Insurance: The driver’s liability policy covers only $50,000.
- Outcome: After exhausting the $50,000, your UIM coverage can pay the remaining $30,000 if your policy limits allow.
Where to Find UIM Coverage on Your Insurance Policy
UIM coverage is part of your own car insurance policy and is often listed on the declarations page. It usually mirrors your liability coverage.
Sample Policy Limits
- Bodily Injury Liability Coverage (BI):
- 25/65 = $25,000 per person, up to $65,000 per accident.
- Underinsured Motorist Coverage (UIM):
- 25/65 = $25,000 per person, up to $65,000 per underinsured accident.
Key Characteristics of UIM Coverage
- First-Party Coverage: UIM is part of your contract with your insurance company.
- Privity of Contract: As an insured party, you have a direct contractual relationship with your insurer.
Utah’s UIM Exhaustion Rule
Before accessing your UIM benefits, you must fully exhaust the at-fault driver’s liability policy limits. This means obtaining the maximum settlement available from their insurance.
Examples of Exhaustion Rule
- Failure to Exhaust
- Scenario: You settle for $21,000 after being rear-ended in Orem, UT. The at-fault driver’s liability policy had a limit of $25,000.
- Outcome: Since you didn’t claim the full $25,000, you are barred from accessing your UIM benefits.
- Successful Exhaustion
- Scenario: After a collision in Provo, UT, your hospital bills total $45,000, and the at-fault driver’s liability limit is $50,000. You settle for the full $50,000.
- Outcome: You can now access your UIM benefits to cover additional expenses.
Steps to Take After an Accident Involving an Underinsured Driver
- Review Your Policy
- Check your declarations page for UIM limits.
- File a Claim with the At-Fault Driver’s Insurance
- Ensure you exhaust their liability limits to meet Utah’s requirements.
- Contact Your Insurance Company
- Notify your insurer of the potential UIM claim.
- Preserve Evidence
- Keep medical records, bills, and proof of other damages.
- Consult a Car Accident Attorney
- Avoid making errors that could disqualify you from accessing your UIM benefits.
Why Hire a Utah Car Accident Attorney?
Navigating UIM claims can be complex, especially with Utah’s exhaustion rule and insurance company tactics. An experienced attorney like Jake Gunter can:
- Analyze your case and policy coverage.
- Negotiate with insurance companies to maximize your compensation.
- Ensure compliance with all legal requirements to avoid disqualification.
Call/Text Utah Car Accident Attorney Jake Gunter at (801) 373-6345
Don’t navigate the challenges of UIM claims alone. Let attorney Jake Gunter fight for the compensation you deserve.