Part of our list of Top 5 Tips to Becoming a Complete Auto Accident Chiropractor
Uninsured / Underinsured Motorist Coverage (UM/UIM): What It Is and Why It Matters
Uninsured / Underinsured Motorist Coverage is optional in the State of Colorado, and many people don’t understand what it is and when it might apply.
UM/UIM Explained
To put it simply, these types of coverage can help pay for injury treatment and losses in cases involving incidents like hit-and-run, at-fault drivers without car insurance, or at-fault drivers with a lack of sufficient insurance.
Uninsured Motorist (UM)
This coverage protects your patient in the case that the at-fault party does not have any insurance. In cases like this, their insurance would cover the lack of insurance from the other party, making sure they’re not left without any compensation.
Underinsured Motorist (UIM)
This coverage protects your patient in cases that the at-fault party’s insurance coverage doesn’t fully cover their treatment and losses.
The minimum coverage for bodily injury in Colorado is $25,000. That’s what most people have on their plans. That said, medical providers and personal injury lawyers alike know that damages from car accidents can easily go beyond $25,000. For example, your patient sustains injuries valued at $100,000 and the at-fault party only has the minimum bodily injury coverage of $25,000. That driver is underinsured for your patient’s losses with a $75,000 gap. However, if your patient has UIM coverage in the amount of $100,000, their own insurance will pay the gap of $75,000.
In the case that the at-fault party was completely uninsured in the same example scenario, the patient’s Uninsured Motorist coverage would then cover the full $100,000.
Why UM/UIM is so Important
As you can see, whether or not your patient has UM/UIM coverage, and how much they’re covered for if they do have it, can be highly important in regards to your patient being able to be fully compensated.
Especially in the case where your patient is on a medical lien and you are getting paid out of the settlement, UM/UIM coverage greatly increases the chances that you will get fully paid out for the medical care you provided.
The Tip, Broken Down
At the appropriate time, your office should request from your patient a copy of their auto insurance declaration page, in order to confirm med pay coverage and uninsured/underinsured (UM/UIM) coverage. The amount of UM/UIM coverage, or lack thereof, could make a huge difference in payment for your patient’s treatment.
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Have additional questions or have a patient that could use expert legal help? Get in touch to talk with an auto accident attorney in Denver right now.