What Is An Underinsured Motorist?

An underinsured motorist is a negligent driver who has inadequate liability limits to compensate you for your losses. In Nebraska, everybody is required by law to purchase car insurance. A driver has the option of purchasing the lowest (and cheapest) amount of liability coverage which is $25,000.00 per person and $50,000.00 per accident.

Most drivers purchase $100,000.00 per person and $300,000.00 per accident in liability coverage. That kind of coverage is usually enough to pay damages in the overwhelming majority of accidents. I would recommend to all of my clients that they purchase at least this level of coverage. (You can always buy more.)

What happens is that somebody with the minimum limits of coverage causes a wreck and the medical bills for the injured person are more than $25,000.00. In that case, the insurance company for the bad driver offers up the $25,000.00 in liability limits. (On rare occasions, $100,000.00 in coverage isn’t enough.)

Once the injured driver is offered the $25,000.00 in coverage, the driver must then file an underinsured motorist (UIM) claim with your own company. The amount you can collect from your own company depends upon how much underinsured motorist coverage you have purchased. I would recommend to my clients that buy at least $100,000.00 in underinsured motorist coverage.

Before you settle with the bad driver and his/her insurance company, you must get written permission from your own company to settle and give that driver a full release and a closed file. Your own company will usually give you that permission but you must still ask for it in every case.

Once you settle with the negligent driver, you then can negotiate a settlement with your own company for compensation under the UIM coverage. Hopefully, you will have enough coverage to fully compensate you for your damages.

If you are in a car accident in Nebraska, please feel free to call me at 1-888-402-HURT or 1-888-402-4878. The first phone call and meeting are free and no up front money is required when you hire me. You’re not saving yourself anytime and money by trying to represent yourself. Most injured people represented by attorneys collect more compensation – even after paying the attorneys fee.

Crawford Law Offices

135 Lakewood Dr
Lincoln, NE 68510
Phone:
(402) 466-3040
Toll Free:
(888) 402-HURT
Fax:
(402) 466-3055

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Disclaimer

The material contained on this website has been prepared by Crawford Law Offices for informational purposes. The information is not intended to be and should not be considered legal advice. Use of this website does not create an attorney-client relationship between users of this site and any other party whatsoever.