Another UIM Policy Limits Settlement

Michael recently secured a total settlement of $112,500 for our client, Jeff, and $27,500 for his wife, Amber. Jeff’s settlement included the underinsured motorist (UIM) policy limits of $100,000, while Amber had about $1,200 in medical bills and made out with a settlement over 20 times her special damages!

Jeff and Amber were in an intersectional collision in which the other driver failed to yield and crashed into the front drive-side of their vehicle. It was a forceful collision that totaled Jeff’s vehicle. Jeff injured his neck, back, and shoulder, while Amber had calcified hematomas in her leg after hitting it on the dashboard.

Jeff required multiple injections in his neck and was advised that he may require surgery to repair a tendon tear in his shoulder. Amber saw her primary physician due to complaints of pain in her leg, and was ultimately referred to a vascular surgeon for possible removal of the calcified hematomas in her leg.

We often speak about the importance of having underinsured motorist (UIM) coverage. This case is a great example of why it is so important. The at-fault driver only had the state minimum policy limits of $25,000/$50,000, which was insufficient to compensate all the injured claimants. In addition to Jeff and Amber, there was a passenger in the at-fault-driver’s vehicle who suffered a fractured leg, and therefore had a bodily injury claim against the driver.

Since there were three injured claimants and only $50,000 available in the underlying liability coverage, the insurer filed an interpleader action – this can happen when the insurance company faces multiple claims against the same insurance policy, in excess of the policy limits.

Fortunately, Jeff and Amber elected to purchase UIM insurance, which applies when the at-fault driver’s insurance is too low to fully compensate the injured claimants. In this case, the UIM coverage allowed Jeff and Amber to get full compensation for their injuries.

We are glad we got great recoveries for Jeff and Amber, and we wish them the best. If you have not already, check with your auto-insurer and make sure you are fully covered protected with underinsured motorist coverage.