INSURANCE 101 – Segment 4

We’ve talked about….UM= Uninsured Motorist Bodily Injury. Now let’s move on and talk about UIMBI, Underinsured Motorist Bodily Injury. UNDERINSURED MOTORIST BODILY INJURY COVERAGE…pays benefits for the BODILY INJURY or Death of you and any passengers in, or on, your vehicle if you are involved in an accident caused by a driver who has some Insurance, but not enough to cover the Bodily Injury losses that result from the accident.

30/60/25..is the Texas State Minimum Liability required. Say the Driver that hit you had these limits of Liability,  but Your UM/UIM Coverage was …100/300/50.  If your resulting medical costs were….$100,000 for you and your passenger…That would mean if the Driver that hit you was at Fault his insurance would pay up to …$60,000 for your medical costs and your UIM….would kick in the balance of …$40,000. Note: you can also be stuck with the bills from a driver who has NO INSURANCE at all. In this case, you’ll need UNDERINSURED MOTORIST COVERAGE to pay your expenses. Here’s where it gets more complicated. You have to have UNDERINSURED MOTORIST COVERAGE LIMITS……..HIGHER THAN….the limits of the at-fault Drivers Bodily Injury LIABILITY Limits, OR YOU MAY not RECEIVE BENEFITS. EXAMPLE….let’s say you are in an accident and you are NOT at fault, and the at-fault Driver has ..$50,000 Bodily Injury Coverage. Assume your UIM is only $25,000, but your medical costs are …$100,000. Because your UIM coverage is less than the at-fault drives Liability, you would NOT BE ABLE TO COLLECT FOR DAMAGES. If, however UIM coverage was ..$100,000 you would be ABLE TO COLLECT for damages over $50,000 up to $100,000 Medical loss.

MORAL OF THE STORY….NEVER DRIVE WITH LIABILITY LIMITS (UNDER) 100/300/50 AND MATCH THE …UM/UIM WITH THE SAME LIMITS…ALWAYS !… you also get a discount for having Higher Limits.

If you have any questions…please feel free to call me for your personal evaluation. 1 972 540-1900.

In the next blog…..we’ll talk about.. PD Coverage

Sincerely,

Wayne “Sweetheart” Shaw
Strictly Cycles Insurance