Insurance people like to say that nobody enjoys paying for insurance – until they need it. Well, I guess they’re right. Perhaps the most appreciation would come into play if you were the victim of an accident and learned the other driver did not have insurance – or only carried state minimums.

What is Uninsured Motorist insurance?
If you are an Oregon resident and have auto insurance, then you have uninsured motorist coverage. How do I know? Because, by law, it is required. Every auto insurance policy issued in Oregon comes with a minimum $25,000 for uninsured motorist provision. Consequently, if you find yourself in the unfortunate situation of being hit by an uninsured motorist, you have at least $25,000 worth of coverage to pay for injuries you, or a passenger in your car, sustained. Why …at least…? You can request increased limits for a relatively low premium. Since many people drive without insurance, increasing these limits is, in my opinion, well worth the cost.

What if the other driver has insurance, but carries only state required minimums?
Oregon’s minimum for bodily injury auto insurance is $25,000 per person and $50,000 per accident. In other words, a registered vehicle must have those limits to be legally operated. Sadly, with medical costs being what they are, those limits may prove dramatically inadequate – particularly if there are multiple injured occupants in your car; the at-fault driver’s insurance company is obligated to pay only $50,000 – regardless of the number of people hurt.

Oregon’s minimum for bodily injury auto insurance is $25,000 per person…those limits may prove dramatically inadequate…

In the event of you being hit by someone who carries low limits, you have underinsured protection as well – again, with a minimum limit of $25,000. Here comes the confusing part: Underinsured protection only pays for the portion above what the other driver has. Examples: a) A driver from Florida has a minimum requirement of $10,000 per person; your policy protects you up to $25,000 – which is, $15,000 above the Florida driver’s provision – all is good; b) A driver from Oregon with minimum limits injures you. Your medical bills are $50,000. Guess what? Your underinsured protection doesn’t really help you? Why not? Remember, your underinsured protection only pays above what the other driver has. That driver had $25,000 in limits, and your underinsured protection was exactly the same – $25,000. (This is why it’s a good idea to pay for increased limits of underinsured coverage.) The underinsured coverage does not stack on top of the liability of the other driver.

…underinsured coverage does not stack…

How high should my UM/UIM limits be?
Given the relatively low cost of this additional coverage, the protection is well-worth the premium. As illustrated, the minimums required can prove to be sorely inadequate for a serious injuries. Too many motorists are driving without insurance, thereby leaving it up to you provide sufficient protection for yourself. Likewise, many motorists either limit their insurance budget due to family finances, or incorrectly believe that if the state only mandates $25,000 liability, that must be enough. Unfortunately, the real cost of health care can quickly eclipse that number; your protection is to have a safety net which assumes that other motorists don’t have sufficient insurance to meet your needs should a tragedy occur.

How do I make a claim if the other driver is uninsured?
Again, you collect information such as driver’s name, address, driver’s license number, vehicle license plate number, VIN (Vehicle Identification Number), and phone number. Notify your insurance agent and/or company to file a claim, and give them the information you collected. The key is to be responsive to your insurance company and to fully cooperate with your insurer’s attempts to identify responsible parties and collect appropriate damages.

Does my health insurance come into play?
Yes. Although auto insurance is primary in the event of accident related injuries, health insurance comes in secondarily. Unfortunately, the lines can become blurry for what the health care insurance company will pay, thus potentially leading to problems. Ideally, you have been advised by your agent concerning adequate limits for accident related injuries.

Remember, the insurance companies are in business to make a profit...

Why would I need an personal injury attorney?
UM/UIM coverage is just one aspect of insurance which  illustrates the confusing details of an injury claim. If you were involved in a serious accident, you should immediately contact an attorney who specializes in auto accident claims.

DISCLAIMER: What follows is an article written by Isaac Jackson, a Personal Injury Attorney,located in Eugene, Oregon licensed to practice law in the State of Oregon. The following article is intended for information purposes only and is NOT intended to create an attorney client relationship or give you specific advice regarding your claim.  The information below regarding personal injury claims may not apply to your case, even if it appears applicable.  You are encouraged to take your personal injury case to a qualified attorney in your area immediately.  Your injury claim may be barred by a statute of limitations, which in some cases could be as little as a month.  If you do not file a notice of claim or a lawsuit within that time period you may lose your right of recovery for your personal injury claim.