Part I - Protecting Yourself by Buying Good Insurance Coverage on Your Own Vehicle
With the current state of the economy, people everywhere are looking for ways to trim budgets. We can expect to find more people reducing what they spend on car insurance and, in some cases, driving with no insurance at all. If you spend less on your car insurance you usually end up with less coverage - fewer benefits to pay your own car repairs, car rental, and medical bills, and fewer benefits to pay for any injury or damages you cause another person. A driver without enough car insurance or with no car insurance will be personally responsible for uncovered damages, but collecting damages from an individual can be difficult or impossible. The guy with no car insurance usually has no money to pay you either.
Fortunately, in Kentucky, you can protect yourself by purchasing Underinsured Motorist Coverage (UM) and/or Uninsured Motorist Coverage (UIM). UM is coverage you buy on your own automobile policies that pays your bodily injury claim if you are in an accident caused by a driver with no insurance. UIM works similarly, but pays you if you are hit by a driver who is insured, but who does not have enough liability coverage to pay everything you deserve. Kentucky requires a minimum of $25,000 in liability coverage on every policy, but your damages might include medical bills, lost wages, pain and suffering and future medical bills and wage loss in excess of $25,000. The value of the claim beyond the amount of coverage is the underinsured amount, and UIM coverage pays that up to the limits of the limits of the UIM policy.
UM and UIM coverage can come into play even if the car or truck that is covered by that insurance is not involved in the wreck. If, for example, you are hit when you are a pedestrian, you can still turn to the coverage on cars in your household for this kind of insurance coverage. If you are in a car that belongs to someone else you will turn first to the car you in for UM or UIM, but next in line will be the UM or UIM on any car owned by you or by a relative living in your household.
Given the state of the economy and the number of uninsured and underinsured drivers on the road, it is a good idea to meet with your insurance agent and review your policies.
With the current state of the economy, people everywhere are looking for ways to trim budgets. We can expect to find more people reducing what they spend on car insurance and, in some cases, driving with no insurance at all. If you spend less on your car insurance you usually end up with less coverage - fewer benefits to pay your own car repairs, car rental, and medical bills, and fewer benefits to pay for any injury or damages you cause another person. A driver without enough car insurance or with no car insurance will be personally responsible for uncovered damages, but collecting damages from an individual can be difficult or impossible. The guy with no car insurance usually has no money to pay you either.
Fortunately, in Kentucky, you can protect yourself by purchasing Underinsured Motorist Coverage (UM) and/or Uninsured Motorist Coverage (UIM). UM is coverage you buy on your own automobile policies that pays your bodily injury claim if you are in an accident caused by a driver with no insurance. UIM works similarly, but pays you if you are hit by a driver who is insured, but who does not have enough liability coverage to pay everything you deserve. Kentucky requires a minimum of $25,000 in liability coverage on every policy, but your damages might include medical bills, lost wages, pain and suffering and future medical bills and wage loss in excess of $25,000. The value of the claim beyond the amount of coverage is the underinsured amount, and UIM coverage pays that up to the limits of the limits of the UIM policy.
UM and UIM coverage can come into play even if the car or truck that is covered by that insurance is not involved in the wreck. If, for example, you are hit when you are a pedestrian, you can still turn to the coverage on cars in your household for this kind of insurance coverage. If you are in a car that belongs to someone else you will turn first to the car you in for UM or UIM, but next in line will be the UM or UIM on any car owned by you or by a relative living in your household.
Given the state of the economy and the number of uninsured and underinsured drivers on the road, it is a good idea to meet with your insurance agent and review your policies.
