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How uninsured/underinsured motorist protection works

On Behalf of | Dec 13, 2021 | Motor Vehicle Accidents |

Drivers in St. Paul, Minnesota are required to buy insurance, but some drivers still do not carry it. Many providers require underinsured/uninsured motorist protection, but some do not. However, even in states that don’t uninsured motorist protection, it can benefit drivers.

Overview of uninsured/underinsured motorist protection

Minnesota requires drivers to have liability to cover the other driver and uninsured and underinsured motorist protection, or UM/UIM. Underinsured motorist coverage compensates for what the at-fault driver lacked by not having enough coverage to pay for damages. The driver can claim up to the UIM policy limit and the policy limit of the other driver.

The uninsured motorist protection coverage activates when the other driver doesn’t have the required liability. This coverage activates when personal injury protection limits of the driver not at fault have been exhausted. Minnesota requires drivers to carry $25,000 for a single-person accident and $50,000 for multiple injured people in UM/UIM.

Benefits of having UM/UIM coverage

If a driver gets into an accident with an uninsured motorist or a hit-and-run, they still may have to pay out-of-pocket costs. Liability does not cover the cost of repairing the insured’s vehicle, but Minnesota has UM/UIM property protection for these circumstances.

While the driver can sue the at-fault driver for damages, many of these drivers lack enough assets. UI/UIM also helps cover the cost of funerals, lost wages, medical bills, and pain and suffering. Buying the limits satisfies the state requirements, but increasing the limits may be worth paying for to avoid financial distress.

Injured drivers and passengers commonly have time limits to file claims under the statutes of limitations. Some providers will settle out of court, but the injured party may need legal assistance to fight legitimate claims that get denied.