UIM stands for uninsured motorist/underinsured motorist. Coverage for the uninsured motorist provides an insured driver with protection, in the event that a motorist without any insurance happens to collide with the driver that bought the UIM option. Coverage for the underinsured motorist provides an insured driver with protection, should that same driver collides with someone whose policy limits do not cover the collision-caused losses.

Procedure used when seeking coverage for losses that were caused by an uninsured motorist

• Driver makes claim with the driver’s own insurance company
• The insurance company has the right to request a recorded statement, and to schedule an independent medical exam (IME) for the claimant/policyholder.
• Once those required procedures have been completed, the insurance company issues a check to the claimant/policyholder.

Procedure used when seeking coverage for losses that were caused by an underinsured motorist

If injured, the policyholder needs to learn the nature and extent of any injuries. If the medical expenses caused by such injuries would be greater than the limits on the other driver’s policy, than the driver that bought the UIM coverage could file a claim with his or her own insurance company.

The Personal Injury Lawyer in Fort Erie knows that added coverage given to the holder of the UIM option cannot exceed the amount of the same driver’s primary liability coverage. The insurance company that sold the UIM option grants an amount of money that exceeds the amount allowed by the terms in the responsible driver’s insurance policy.

Special stipulations

The policyholder that plans to make use of purchased UIM coverage must alert the insurance company to that fact. That should be done as soon as possible. Some insurance companies set a deadline for alerting them to any plans for utilizing the UIM coverage.

If, at the scene of the accident, the other driver has refused to share his or her information, then the well-insured driver should treat the uncooperative motorist as an uninsured motorist. Hence, someone with UIM coverage would be expected to file a claim with his or her own insurance company.

The policyholder that has purchased a UIM option has no legal right to file a lawsuit against his or her own insurance company. Instead, the policyholder should expect that a disputed claim would get submitted to binding arbitration. That is a hearing with a neutral arbiter.

Why does the insurance company demand use of binding arbitration, in the event that the policyholder has a dispute with the insurance company? That is due to the provisions that are linked to binding arbitration. Someone that has lost a case that was submitted to binding arbitration has no legal right to appeal the arbiter’s decision. Insurance companies seem to expect any arbiter to rule in their favor.