Uninsured Motorist Insurance

Most states have laws that require vehicle owners and drivers to have uninsured motorist ("UM") insurance, which is designed to protect innocent victims who are injured in car accidents with uninsured motorists. The idea is to pay those victims' injuries in an amount equal to what they would have been paid if the motorist who caused the injury had been insured.

The uninsured motorist laws differ greatly from state to state, but most UM laws have two major parts:

• A requirement that there be insurance coverage for the payment of all sums that the victim is legally entitled to recover as damages for bodily injury caused by the owner or operator of an uninsured vehicle
• A definition of "uninsured vehicle"

UM insurance policies vary due to the requirements of state laws, and policy terms will vary from insurer to insurer, but most UM policies usually define things like:

• The injured persons or victims who are covered by the policy, that is, who is an "insured"
• Who is "uninsured"
• The types of vehicles that are and are not covered by the UM policy

If you've been injured in an accident and the driver was not insured, it's critical that you understand both the UM laws of your area, as well as the language of your insurance policy's UM coverage.

Getting or Having Coverage

In almost all states, insurers are required to offer or provide uninsured motorist insurance to their insureds, but with some exceptions, which include:

• UM insurance is not included in homeowners' insurance
• Rental car companies usually do not have to offer UM coverage

In addition, in some states, an insured can reject, or refuse UM coverage when it is offered by the insurer. Usually, only the person who entered into the insurance contract with the insurer and who is named in the policy as the "named insured" can reject UM coverage. In addition, the UM laws usually provide that a rejection of UM coverage:

• Must be in writing
• Must show that the insured understands what UM coverage is and what it means if the coverage is rejected, and
• Is effective on the date the rejection was signed, which is usually when the application for insurance was signed

What's Covered and What's Excluded?

The amount of UM coverage is usually set by the UM laws as the minimum amount of coverage ("state minimum" or "minimum coverage") that an insurer must offer and that an insured must have. In addition to the minimum, however, many UM laws allow insureds to buy additional UM coverage, up to a specified amount ("maximum coverage").

Some states' UM laws require coverage for property damage, but most UM statutes specifically exclude property damage coverage. So, damages to your car in an accident with an uninsured driver will probably have to be paid for out-of-pocket or under your collision or comprehensive insurance coverage.

Almost all UM laws give coverage for all sums that an insured is "legally entitled to recover", but the laws do not define that phrase. In many instances, you are "legally entitled to recover" when you can prove:

• That the uninsured motorist was at fault in causing your damages or injuries, and
• That your damages can be measured, that is, there is a certain sum of money that will pay for your damages fully

Covered injuries are those that "arise out of the ownership, maintenance or use of an uninsured motor vehicle," or words of similar meaning.

"Uninsured vehicle" is defined differently by the various states' UM laws, but some of the more common definitions include:

• A vehicle that is not covered under an insurance policy in a state requiring insurance drivers and vehicle owners to have insurance (compulsory coverage)
• Hit-and-run ("hit-skip") vehicles, and
• Stolen vehicles

"Arising out of the ownership, maintenance or use of an uninsured motor vehicle," means that there must be some "nexus" or connection between the uninsured motor vehicle and the victim's injury. In most states, the uninsured vehicle has to be something more than simply the place where the injury occurred. The terms "operation" and "use" imply movement of the vehicle. So, not every accident or injury in or near an uninsured vehicle will be covered.

For example, UM coverage did not apply when the victim, who was sitting in an uninsured car, was forced out of the car by another person at gunpoint and was injured, with the gunman driving away in the car.

Almost all UM laws call for the payment of "damages" to the insured for his or her bodily injury, sickness, or disease, including death, that result from an accident with an uninsured motorist. Payments certainly include medical costs, but depending upon the UM laws of your state and your policy, other damages could include:

• Income that was lost because of the injury
• Pain and suffering
• Punitive damages, which are designed to "punish" the other driver for causing the injury

Finally, almost every, if not all, UM insurance policies contain "exclusions" - specific types of persons or vehicles that will not be covered by the UM provisions. Some of the most common include:

• Injuries to the insured who is occupying an uninsured vehicle that is owned by the insured or his or her relatives in his household
• Injuries to a person who is driving the insured vehicle without the insured-owner's permission ("non-permissive user")
• Vehicles "for hire" by the public, such as taxi cabs, and
• Government vehicles

Who Is Covered?

It is crucial that the person claiming benefits under an uninsured motorist policy fall within the policy's definition of an "insured" because that is who the coverage is intended to protect. In general, insured persons fall into one of three classes:

• Class 1, which includes the named insured, his or her spouse, and his or her family members who reside in the same household
• Class 2, which consists of "occupants" of the insured vehicle, and
• Class 3, which are those persons who do not suffer a direct injury from an accident with an uninsured auto, but rather, their damages are somehow related to the insured's injury that was caused by an uninsured driver, such as children who seek damages for the death of a non-custodial parent

The requirements for determining who falls into which class, and particularly Class 1 or 2, differ greatly from state to state and from policy to policy. Likewise, the ability of Class 3 insureds to recover UM damages is very much dependent upon how the courts in your state interpret a particular insurance policy and the facts of the case. So, it is important that you understand your policy and the laws of your state if you have a claim for UM benefits.

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