How Do Maine Uninsured And Underinsured Motorist Insurance Coverage Work?
Each and every day, Mainers suffer personal injuries in serious motor vehicle accidents. When an unexpected accident occurs, it can strike anyone. You may be a careful driver and think that you have adequate motor vehicle insurance coverage only to find out after an accident that you have a minimum limits policy. Here in Maine, the minimum limits of motor vehicle liability coverage- including uninsured (UM) and underinsured (UIM) - are $50,000 per person/$100,000 per accident (if there are two or more injured parties).
But what happens if your past and future medical bills and/or lost wages amount to more than $50,000? On top of that there is the conscious physical and emotional pain and suffering that you would likely experience in a serious accident. Financial tragedy can occur if the driver responsible for the accident does not have insurance coverage sufficient to fully and fairly compensate you for your injuries, and you have minimum limits UM/UIM coverage.
Little is known by most Mainers about UM and UIM coverage. An uninsured motorist is someone who does not have any motor vehicle liability insurance coverage at the time of an accident. An underinsured motorist is someone who has auto insurance, but their limits of coverage are not adequate to fully and fairly compensate you for your injuries, and you carry higher UIM limits of coverage.
In Maine, minimum limits of UM/UIM coverage are mandatory. However, you can request and pay for higher limits of liability and UM/UIM coverage. If you have purchased higher limits of UM/UIM coverage, it is that insurance that can come to the rescue for you and your family if you are involved in a serious motor vehicle accident. This very important type of insurance coverage will help compensate you and your passengers for the full extent of your damages. And, the cost to add these higher limits of coverage to your insurance policy is minimal – it is the mandated minimum limits that are the most expensive to purchase.
Your uninsured and underinsured coverage may apply if you are:
• Injured in a motor vehicle accident caused by a driver with no auto insurance.
• Injured as a pedestrian, bicyclist, or skateboarder when struck by a motor vehicle.
• Injured as a passenger in a motor vehicle or other type of vehicle, such as a snow machine or ATV, struck by a motor vehicle.
• Injured in a “ hit and run” accident or in an accident where a phantom vehicle swerves into your lane and causes you to drive off the road - physical contact between the vehicles is not required.
• Living with a blood relative in the same household – under Maine law, in certain circumstances multiple UM/UIM policies of family members may stack one of top of the other to provide even
greater coverage.
• Injured in a motor vehicle accident caused by a driver whose liability insurance coverage limits are lower than your UIM limits of coverage.
We have seen many clients and there families suffer greatly because they have only purchased minimum limits of insurance coverage. We have also seen many clients benefit greatly when they have been able to collect additional insurance money because they wisely purchased higher limits of UM/UIM coverage. With a simple call to your auto insurance company or agent you can purchase higher limits of UM/UIM and thereby protect your family from a possible financial hardship. Only then will you, your family, and friends have adequate protection against a devastating loss.
