January 29th 2010
Limits and Other Details.
When you choose Uninsured Motorist insurance, you must select limits, which will determine the maximum amount your insurance company will pay if you use this insurance coverage.
For both Uninsured Motorist insurance (UM or UMBI) and Underinsured Motorist insurance (UIM), the limit you choose describes the maximum payout of this coverage. In most cases, you can choose either a split limit or a combined single limit.
With a split limit, the first number describes the maximum payout per-person, and the second number is the maximum total payout per accident.
For example, if you chose a split limit of $15,000/$30,000:
* $15,000 would be the most your insurance would pay for injuries sustained by a single person in the accident, and
* $30,000 would be the most your insurance would pay for all injuries sustained by all other people in the accident.
For example, if you chose a combined single limit of $30,000:
* $30,000 would be the most your insurance would pay for all injuries sustained in the accident.
For Uninsured Motorist Property Damage insurance (UMPD), the limit is a single number. This number is the maximum total payout for all property damaged in a single accident.
For example, if you chose a limit of $10,000, then $10,000 would be the most your insurance would pay for all property damaged in a single accident.
In some states, such as Virginia, a deductible may apply to Uninsured Motorist Property Damage insurance (UMPD). The deductible is the amount that you agree to pay out of pocket when you have a claim.
Uninsured Motorist Insurance Example
You stop at a red light and are rear-ended. Your car's rear bumper is pretty damaged, and your arm hurts because it slammed against the steering wheel.
As the cops are handling the accident, you find out the other driver doesn't have any insurance.
Fortunately, you purchased Uninsured Motorist insurance (UM or UMBI) with limits of $15,000/$30,000 and Uninsured Motorist Property Damage insurance (UMPD) with a limit of $10,000.
Your Uninsured Motorist insurance (UM or UMBI) will pay the $1,500 medical bill for having your arm x-rayed because the amount of the bill falls within the per-person limit of $15,000 that you selected.
Your Uninsured Motorist Property Damage insurance (UMPD) will pay the $1,000 to replace your rear bumper because the bill is less than your $10,000 limit.
Exceptions and Restrictions
Available options, limits and UM coverages vary according to state. Each state has different requirements as to whether UM includes UIM, and whether UMPD is available and whether any of these coverages are mandatory to operate your vehicle.
:rolleyes :
Linear Mode
