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What is Underinsured Motorist Insurance in Your Personal Injury Case?

By: Whalen Hersh January 31, 2019 no comments

What is Underinsured Motorist Insurance in Your Personal Injury Case?

In Colorado, with the exception of commercial vehicles and big companies, everyday motorists are required to only have a minimum of $25,000.00 in insurance coverage to pay for bodily injury claims when they cause an accident. While many drivers have more insurance coverage, the best way to protect yourself from an under-insured or uninsured driver is to purchase these coverages from your own insurance company. Otherwise, you may find yourself involved in an accident with an underinsured or totally uninsured driver. What happens then? According to the Insurance Information Institute, 13%, or one in eight drivers, are currently uninsured. Here’s what you need to know about underinsured and uninsured motorist insurance, and how those types of insurance coverages work.

What is Underinsured Motorist Insurance?

When you are in an automobile accident caused by another driver, the other driver’s insurance policy will cover losses up to their policy limits, then your underinsured motorist coverage kicks in to cover the rest, up to your policy limits. It’s critical to carry this coverage and it can make a big difference in your case.

How is Underinsured Motorist different from Uninsured Motorist Insurance?

Uninsured motorist coverage takes care of your injuries when you are involved in an accident caused by another driver who has no insurance at all. When the at-fault driver has no liability insurance coverage, your uninsured motorist coverage takes over. Underinsured motorist coverage applies when your injury case is in far excess of the coverage held by the driver who caused the crash. In some instances, the person causing the accident could have $300,000.00 to $500,000.00 in insurance coverage although many of our cases exceed this amount and underinsured motorist benefits are still important in those situations because our attorneys can often recover more money in your case.

The average number of auto accidents every year in the U.S. is six million, with three million people becoming injured every year in these accidents. With the affordability of uninsured and underinsured motorist coverage and the number of drivers on the road without sufficient insurance, it doesn’t make sense to have a policy where this type of coverage is not included. Make sure this is something that is included in your coverage – it may only cost a few extra dollars a month and it’s worth the security of knowing you are protected.

What else do I need to know about Underinsured Motorist and Uninsured Motorist Insurance?

Bodily injury coverage for underinsured or uninsured motorists (UMBI) can cover medical expenses, lost wages, and other injury-related expenses for you, anyone driving your vehicle with your permission, and any passengers. Submitting these types of claims can be complicated and you must follow certain legal requirements under your policy to preserve your rights to pursue recovery under these benefits. One wrong move and you can be prohibited from making the claim and recovering these benefits as part of your injury case. You must use an experienced injury lawyer with a background in handling these claims, you must know your rights under the policy, follow the policy provisions, and exercise your legal rights when your own insurance company unfairly tries to pay you less for your claim or improperly handles the claim evaluation process against your interest. These types of actions can mature into what are known as Bad Faith Litigation cases.

Past Case Results



At Whalen Hersh, our firm exclusively represents clients against insurance companies and corporations in personal injury matters. We have the resources and experience to thoroughly represent you in a personal injury case. Our goal is to help ensure you receive adequate, fair, full compensation for any losses you may have suffered. Our personal injury attorneys are ready to provide you with the best representation available in pursuing a legal claim. Contact us today for a free, no-obligation consultation to discuss the details of your case and consider your legal options.

You can reach us in Denver at (720) 307-2666 or Colorado Springs at (719) 644-7000 to learn more. You can find us in Colorado Springs in the Alamo Corporate Center located at 102 S. Tejon Street, Suite 1100 or in the Denver Tech Center at 7955 East Arapahoe Court, Suite 2375, Centennial, CO 80112. We look forward to working with you to help you receive fair and just compensation for your losses.

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