The Skinny on UM/UIM for Iowa Motorists

Sometimes, we will only believe something after having a brush-up against tragedy. Imagine that you’re driving along the road on New Year’s Eve and there are many hazards that could affect you and the occupants of your vehicle. There could be a semi-truck that loses a tire on the highway, a motorcycle that zips out in front of you from nowhere, or a drunk bicyclist in the crosswalk. Alternatively, a car behind you could fail to stop on black ice and strike the rear of your vehicle at a red light. When a traffic crash occurs, you may not be the driver or the vehicle owner at fault, but you could walk away with serious injuries that will negatively impact your future. While you may recover from these injuries, they will change how you view car insurance.

It’s important to purchase the right types and limits of car insurance coverage in Iowa before you or a family member gets injured in a crash. Any insurance coverages made after the accident occurs will not apply to the event, which could leave you with more medical bills than you can afford. Don’t let accident-related medical expenses become a financial burden on your family. The alternative is to purchase enough 

Uninsured/Underinsured Motorists (UM/UIM) insurance benefits to protect yourself and your loved ones against many car crash scenarios.

Here’s a quick overview on Iowa car insurance:

Iowa is not a no-fault state. If you are living in Iowa, the state requires the following minimum coverages for auto insurance policies:

+ $20,000 Bodily Injury (per person)

+ $40,000 Bodily Injury (per accident)

+ $20,000 per person/$40,000 per accident Uninsured Motorist 

The UM policy can be waived if you are willing to sign a form.

When people ask whether they need UM/UIM benefits, I answer with a big, fat YES! This coverage kicks in to cover expenses you cannot recover from the at-fault driver or at-fault vehicle owner. UM/UIM motorist coverage can cover these expenses: 

+ Medical bills

+ Lost wages

+ Pain and suffering

When you’re injured, it’s difficult to prove your damages resulted from the defendant’s negligence unless you seek treatment, complete it, and then collect medical records from every provider. These records and other kinds of evidence must establish how you were seriously injured due to the other party’s action or inaction during the event. There are many scenarios where you might need UM/UIM. 

You are the victim in a head-on collision. You suffer a concussion, a neck injury, and a shattered leg. Your neck injury will cause a lifetime of pain, but your leg requires three surgeries to correct. Your medical bills already exceed $130,000. The at-fault insurance policy only offers $50,000 per person and $100,000 per accident in Bodily Injury coverage. Their insurance carrier was smart and paid the $50,000 on your behalf towards the hospital bill. Now, the defendant’s insurance benefits are gone, but you still have over $80,000 in unpaid medical bills as well as uncertain future medical expenses. If you have UM/UIM, you could potentially make a claim for your unpaid bills. Without UM/UIM, you’re stuck with financial responsibility for all unpaid expenses. Uninsured Motorist protects against drivers without insurance, while Underinsured Motorist protects when the at-fault’s Bodily Injury coverage isn’t enough. The scenario I just described falls under Underinsured Motorist benefits.

Financial products and Insurance are provided through partner carriers. See disclosures and product materials for specific features and benefits.  An agency relationship is not created by viewing or reading this blog. Examples of protection are not all-inclusive and policyholders should refer to their policies for full coverage details.  ©Smith-Kenyon Insurance Resources, LLC 2018