Navigating Kentucky’s roads requires a comprehensive understanding of auto insurance coverages designed to protect you.
Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverages are pivotal in safeguarding against drivers who lack adequate insurance.
Uninsured Motorist (UM) Coverage
UM coverage provides financial protection if you’re involved in an accident with a driver without liability insurance.In Kentucky:
Mandatory Offering
Insurance companies must offer Uninsured Motorist (UM) coverage with minimum limits of $25,000 per person and $50,000 per accident.
Opt-Out Provision
Policyholders can reject UM coverage, but this rejection must be made in writing and explicitly stated.
Given the prevalence of uninsured drivers in Kentucky, maintaining underinsured motorist (UM) coverage is prudent to protect against potential financial burdens resulting from accidents with uninsured motorists.
Underinsured Motorist (UIM) Coverage
Definition: An “underinsured motorist” is a party with motor vehicle liability insurance coverage in an amount less than the judgment recovered against that party for damages due to a motor vehicle accident.
UIM coverage becomes crucial when an at-fault driver’s liability insurance is insufficient to cover the damages incurred.
Optional Coverage
Unlike UM coverage, Kentucky law does not require insurers to include UIM coverage in their policies automatically.
However, they must make it available upon request.
Securing UIM coverage ensures a financial safety net when the at-fault driver’s insurance falls short, covering the gap up to your policy limits.
Affordability of UM and UIM Coverages
One of the compelling aspects of UM and UIM coverages is their affordability relative to the protection they offer.
Some policies offer $25,000 of uninsured coverage for as low as $60 per year.
Investing in these coverages can be a cost-effective way to mitigate the financial risks associated with accidents involving uninsured or underinsured drivers.
Stacking of UM and UIM Coverages in Kentucky
Kentucky law permits the “stacking” of UM and UIM coverages, allowing policyholders to combine coverage limits across multiple vehicles insured under the same policy.
This means that if you have multiple vehicles with UM/UIM coverage and pay separate premiums per vehicle for these coverages, you can potentially increase your total coverage amount by stacking the limits of each policy.
Reviewing your insurance policy’s specific terms is essential, as some insurers may include anti-stacking measures, such as charging a single limits premium for the coverage.
Coverage Extends Beyond the Policyholder
An added advantage of UM and UIM coverages is that they follow the person and the household, not just the vehicle.
This means that these coverages can extend to accidents that don’t involve the vehicle with the coverage and to other household family members, providing a broader safety net for your family.
This extension protects you and your loved ones, regardless of the vehicle you are in during an accident.
Growing Importance Amid Economic Challenges
Economic fluctuations could lead to an increase in uninsured and underinsured drivers on the road.Factors contributing to this trend include:
Financial Constraints
Economic downturns may lead some drivers to forgo or reduce their insurance coverage to save money.
Rising Insurance Premiums
Increased costs may result in more drivers opting for minimum coverage or none at all.
Having robust UM and UIM coverages becomes even more critical in such times, ensuring that you’re not left bearing the financial burden if involved in an accident with a driver lacking adequate insurance.
What Happens After an Accident?
Even with UM and UIM coverage, navigating an accident claim involving an uninsured or underinsured driver can be complex.
Insurance companies often dispute coverage, deny liability, or offer far less than what’s fair.
That’s when these policies truly get put to the test, and it’s why having the right attorney matters.
At Sam Aguiar Injury Lawyers, we go far beyond the basics.
We thoroughly investigate, uncover hidden coverages, fight undervalued claims, and ensure our clients receive every dollar they are entitled to.
Whether your insurer delays payment, underestimates your injuries, or fails to disclose applicable coverage, we’re built to take them on.
Legal Representation Is Essential in UM/UIM Claims
First-party insurance claims involving your carrier can be even more adversarial than claims against a third party. Carriers may:
Deny that coverage applies
Dispute injury severity or liability
Conceal additional policies or stacking opportunities
Under-value damages like future care, pain, and suffering
You need an attorney to force disclosure, document damages properly, and present your case for maximum compensation.
Sam Aguiar’s Proven Track Record
Few attorneys in Kentucky, or nationally, have the depth of experience in first-party insurance disputes as Sam Aguiar.
Sam is widely recognized for his groundbreaking work uncovering undisclosed UM and UIM coverage in auto claims across Kentucky.
His work led to his appointment as Class Counsel in a certified Kentucky class action that forced insurance companies to pay millions in undisclosed coverage benefits to hundreds of Kentucky policyholders.
Each claimant received more than double the amount owed in benefits under the settlement terms.
Whether it’s uncovering undisclosed policies, analyzing confusing declarations pages, or fighting for top compensation in arbitration or court, Sam Aguiar Injury Lawyers knows how to win first-party insurance battles.
FAQs About UM and UIM Coverage in Kentucky
1. Is uninsured motorist (UM) coverage required?
Yes, unless you reject it in writing. By law, all auto insurers in Kentucky are required to offer underinsured motorist (UM) coverage.
If you do not want it, you must opt out in writing, as per KRS § 304.20-020.
Most people don’t reject it, and they shouldn’t. It’s some of the most valuable coverage available.
2. What is the difference between UM and UIM coverage?
UM covers injuries caused by drivers with no insurance at all.
UIM covers you when the at-fault driver has some insurance, but not enough to cover the full extent of your injuries and damages.
3. How does stacking UM/UIM coverage work in Kentucky?
Suppose you have multiple vehicles insured and pay separate premiums for UM/UIM coverage on each. You may be able to stack the coverage limits, which increases the total payout available to you.
For example, if you have three vehicles, each with $50,000 in UM coverage, and pay a UM premium for each car, you have up to $150,000 in total UM coverage available for a loss.
4. Will UM or UIM coverage apply if I wasn’t in my car at the time of the accident?
Yes, UM and UIM coverages should follow the person, not just the vehicle.
This means you may be covered if you were hit while riding in someone else’s car, walking, biking, or even riding as a bus passenger.
5. What should I do if I suspect the insurance company is hiding coverage or denying a valid UM/UIM claim?
Call Sam Aguiar Injury Lawyers. Our team is experienced in identifying policy manipulation, ambiguous language, and hidden coverage.
If the insurance company isn’t being honest, we’ll expose it and hold them accountable.
Conclusion
Securing Uninsured and Underinsured Motorist coverages in Kentucky is a prudent step toward comprehensive financial protection.
Given their affordability and the extensive coverage they offer, including the ability to stack policies and extend protection to household members, these coverages provide peace of mind in an unpredictable driving environment.
Consult with your insurance provider to understand your current coverage and consider enhancing it to safeguard against the risks posed by uninsured and underinsured motorists.