Many of our clients who come to our firm for legal representation as the result of injuries and damages sustained in automobile or motorcycle accidents do not have adequate insurance. We have previously written about the need to have Uninsured Motorist Coverage (UM) as a specific coverage in your motor vehicle liability insurance policy. State law requires that a minimum amount ($15,000) of UM Coverage be provided. And you have the option to purchase more. UM coverage protects you against a person who is at fault in an accident and causes you injuries and damages, but has no insurance. However, many people who are at-fault in motor vehicle accidents will have insurance, but they simply do not carry a sufficient amount of liability coverage to pay for your injuries and damages, which can frequently exceed the minimum coverage ($15,000) that state law requires.
As many of our clients have discovered, the costs of medical treatment have soared, as have the costs related to repairing and replacing damaged automobiles. When an at-fault driver causes an accident but does not have a sufficient amount of liability insurance, if you have purchased optional Underinsured Motorist Coverage (UIM), you have the right to file a claim with your own insurance company for any damages over and above the at-fault driver’s policy limits up to the amount of UIM Coverage you have purchased. UIM Coverage protects you in the event that an at-fault driver who causes you injuries and damages does not have enough liability insurance to pay for your losses. These losses may consist of wages, medical bills, pain and suffering, and other non-economic injuries. For example, if you are injured in an accident and your medical expenses total $20,000, but the at-fault driver has only a $15,000 liability insurance policy, if you have purchased UIM Coverage in the amount of $25,000, then there would be an additional $25,000 in coverage available to pay towards your damages, which would be an additional $5,000 in medical expenses, plus any lost wages or pain and suffering damages, up to $25,000.
You have the right in South Carolina to purchase UIM Coverage in any amount up to the limits of your own liability insurance. For example, if you have elected liability limits of $50,000 per person and $100,000 per accident, you would then have the option of purchasing UIM coverage up to those same limits, $50,000/$100,000. You may also purchase less UM coverage.
South Carolina law requires that UIM Coverage be offered up to the limits of liability insurance that is purchased. It must be offered in writing and in a manner that you can understand on a form approved by the South Carolina Department of Insurance. The law governing the right to purchase and recover UIM Coverage can be very complex, and legal counsel should always be consulted. For example, you should never settle with the insurance company for the at-fault driver without having your own attorney review the settlement documents. If you do, it could prevent you from being able to recover under your own policy. In general, when a settlement is reached with an at-fault driver’s insurance company, you should sign what is known as a covenant not to execute. If properly worded, a covenant not to execute will preserve your right to file a claim for UIM Coverage, as well as additional liability coverage that may be available.
In summary, UIM Coverage, if purchased, protects you when the at-fault driver has the required minimum amount of insurance or more, but his or her liability limits are not sufficient to pay for your injuries and damages. Our law firm highly recommends that our clients purchase this coverage because many vehicles in South Carolina and from other states simply do not carry sufficient amounts of liability insurance to cover our client’s damages. If you have any questions about UIM Coverage, we urge to give us a call. With the help of your insurance agent, we can assist you in protecting your right to recover for your injuries and damages in the event an at- fault driver does not have a sufficient amount of liability insurance. UIM Coverage may be purchased for both bodily injury and property damage.
