
The State of Missouri requires every driver operating a motor vehicle to carry a minimum level of liability insurance. However, according to recent statistical data gathered by the Insurance Research Counsil (IRC), approximately 14% of motorists within the State of Missouri are uninsured. This is significant because liability insurance is designed to ensure drivers are able to contribute to or completely cover expenses and costs associated with property damage and/or bodily injuries sustained as the result of a car accident. When an at-fault driver who is liable for a car accident fails to maintain a minimum amount of liability insurance, or does not have enough available in insurance coverage, the driver who is not responsible for the car accident is often tasked with figuring out what options they have available. If faced with this situation, it is important that you understand uninsured motorist (UM) coverage and underinsured motorist (UIM) coverage, in order to receive compensation.
Uninsured motorist (UM) coverage
Although every motorist is required to maintain car insurance, the reality is there will always be individuals on the roadway who are uninsured. Absent an insurance company to recover from for bodily injuries sustained as a result of a car accident, it can be difficult for an insured individual to receive compensation for the damages or injuries they sustained. This specific situation sheds light on the necessity for uninsured motorist coverage.
Uninsured motorist coverage protects insured individuals who are involved in accidents wherein the other driver is uninsured. In the State of Missouri, every driver is required to maintain, at minimum, uninsured liability coverage of $25,000/per person for bodily injury and $50,000/per accident for bodily injury. No car insurance policy can be lawfully provided absent this minimum uninsured motorist coverage, pursuant to RSMo. § 379.203.
$25,000/per person for bodily injury essentially means there is $25,000 available in insurance coverage to compensate an injured individual who sustained bodily injuries as a result of a car accident. $50,000/per accident for bodily injury provides additional compensation in the event more than one person was inside the insured individual’s vehicle at the time of the car accident, and also sustained bodily injuries as a result. In that case, there would be $50,000 available for the driver and all injured passengers to recover compensation from.
In essence, uninsured motorist coverage exists in order to provide individuals injured as the result of a car accident with an uninsured individual the same protection they would have in the event they had been involved in a car accident with an insured driver.
However, if an insured motorist is involved in a car accident with an uninsured driver, but the car accident was caused by the insured motorist, there would be no avenue for recovery for the insured individual. This is because uninsured motorist coverage only protects insured individuals involved in a car accident that was the fault of the uninsured driver. Since fault has to be placed on the uninsured driver, insurance companies will oftentimes conduct a detailed investigation of the facts leading up to the car accident, in an attempt to avoid having to compensate their insured through uninsured motorist protection.
Uninsured motorist coverage can also extend to situations where it is not possible to determine the coverage status of the other individual involved in a car accident, such as hit-and-run accidents or car accidents involving a phantom driver/vehicle.
When an individual flees the scene of the accident without providing their insurance information, it can be extremely difficult to determine whether the fleeing driver was insured unless there are surveillance cameras that captured the accident or eye witnesses who may have recorded the fleeing driver’s license plate or any other descriptor that could potentially identify the driver who fled the scene of the accident. As such, an insured motorist involved in a hit-and-run accident would likely have to seek recovery through their uninsured motorist coverage.
The same is true for car accidents involving phantom drivers/vehicles. A phantom driver can be described as a driver who causes an accident due to their negligent actions, but never actually contacted any other vehicle involved in the accident. For example, imagine you are driving on a three-lane highway, in the middle lane, when the vehicle in the right lane drifts over into your lane. In an attempt to avoid colliding with this drifting vehicle, you swerve to the left, striking another vehicle driving in the left lane. You pull over along with the driver of the vehicle you struck, while the vehicle that caused the accident by drifting into your lane continues on with their travel, unharmed. This type of situation is often referred to as a “miss-and-run” because although the driver responsible for the accident missed colliding with any vehicles, their negligence still caused the accident. Insured individuals involved in an accident with a phantom driver/vehicle would likely have to seek compensation through their uninsured motorist coverage.
Although $25,000 is the minimum amount a motorist is required to maintain in uninsured motorist coverage in Missouri, it can be advantageous to elect a higher coverage amount. This is because uninsured and underinsured coverages cannot be used in conjunction with one another. As such, if an insured motorist is involved in a car accident with an uninsured driver, the insured motorist will only be able to recover from their uninsured motorist coverage.
Underinsured motorist (UIM) coverage
Unlike uninsured motorist coverage, underinsured motorist coverage is not a requirement in the State of Missouri. As such, electing to accept this coverage is purely discretionary. However, underinsured motorist coverage can oftentimes prove itself necessary in many situations, especially when you have sustained significant medical bills, lost wages, and other economic losses. Underinsured motorist coverage comes into place when the at-fault driver has insurance coverage, but said coverage is not enough to fully compensate the party or parties injured as a result of the car accident.
For example, let’s say you have underinsured motorist coverage of $100,000/per person through your insurance company, and you are involved in a car accident with an individual who has a minimum insurance policy of $25,000. As a result of the car accident, you sustained $75,000 in medical bills and expenses. In this case, the at-fault individual’s insurance coverage is not enough to fully compensate you for your injuries because the maximum amount they can provide is $25,000. However, because you have $100,000 available in underinsured motorist coverage, you can seek additional compensation through your insurance company, after receiving the full policy limits ($25,000) from the at-fault driver’s insurance company.
It is not uncommon for insurance companies to minimize the extent of your bodily injuries or damages in underinsured motorist coverage cases as well, since insurance companies oftentimes do everything they can to avoid providing compensation.
Call The Swanson Law Firm Today to Get Started!
Although your insurance company is required to step in and make you whole by filling the shoes of the at-fault party in these types of situation, it is common for insurance companies to attempt to minimize the amount they are willing to provide in compensation. As such, it can be extremely important to obtain knowledgeable and experienced legal representation to fight for fair and just compensation on your behalf. If you or a loved one have been injured as the result of a car accident, call The Swanson Law Firm today to schedule your free consultation.
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