Why Underinsured Motorist Coverage Can Be the Safety Net That Saves Your Case

Why Underinsured Motorist Coverage Can Be the Safety Net That Saves Your Case

At The Law Office of Don Edwards, LLC, we’ve seen firsthand how one detail in an insurance policy can make all the difference between walking away empty-handed and receiving a life-changing settlement. One recent case is a perfect example of why uninsured/underinsured motorist (UM/UIM) coverage is a critical safety net for every driver.

The Case: A Hit-and-Run With No At-Fault Insurance

Our client was injured in a hit-and-run accident. The at-fault driver fled the scene and, even if located, had no valid insurance. For many accident victims, this would mean no path to recovery—medical bills, lost wages, and pain and suffering would go uncompensated.

But this client had something working in their favor:

They carried $25,000 in uninsured motorist coverage on their own auto policy.

Because of this, our firm was able to recover the full policy limits on their UM coverage. What could have been a complete financial loss turned into a settlement that gave our client the resources they needed to heal and move forward.

Why This Matters to Every Driver

Uninsured/underinsured motorist coverage is your insurance policy for someone else’s lack of insurance. It steps in when the at-fault driver:

• Has no insurance (uninsured)

• Has too little coverage to pay for the damages they caused (underinsured)

• Is a hit-and-run driver who can’t be identified

Without UM/UIM coverage, accident victims are often left to absorb the costs themselves.

Pro Tip: Choose “Add-On” Coverage, Not “Reduced By”

If you’re purchasing UM coverage, make sure you choose the add-on option—not “reduced by.” Here’s why:

• With reduced-by coverage, your UM limits are reduced by the amount the at-fault driver’s insurance pays. For example, if the other driver has $25,000 in liability coverage and you have $25,000 UM reduced-by coverage, your UM benefit is essentially wiped out.

• With add-on coverage, your UM limits stack on top of the at-fault driver’s coverage. Using the same example, $25,000 from the other driver plus $25,000 from your UM add-on policy means a potential total recovery of $50,000.

An Additional Safety Net: Resident Relative UM Coverage

Even if a client doesn’t have UM coverage on their own policy, there may be another option—one many people don’t realize exists.

In some cases, we can pursue “resident relative” uninsured motorist coverage. This applies when:

• The injured person lives with a family member who has UM coverage on their own policy

• That family member gives permission to pursue a claim through their policy

This can be a powerful recovery option for people who otherwise have no coverage of their own.

The Bottom Line

Carrying uninsured/underinsured motorist coverage—and making sure it’s add-on coverage—is one of the smartest decisions you can make to protect yourself and your loved ones. And if you’ve been injured in an accident—especially a hit-and-run or with an uninsured driver—it’s important to work with an attorney who knows how to identify every possible source of recovery, including policies you might not even realize apply to you.

If you’ve been in an accident and aren’t sure what your options are, contact The Law Office of Don Edwards, LLC today. We’ll review your case, your coverage, and fight to make sure you get every dollar you deserve.