If you have a valid insurance policy you may still be covered by Uninsured Motorist (UM) coverage. Uninsured motorist coverage is a type of insurance policy that protects drivers in the event they are involved in an accident with a driver who doesn't have liability insurance or enough coverage to pay for the damages. In Missouri, uninsured motorist coverage is mandatory, but drivers can opt-out of the coverage if they sign a waiver.
The state of Missouri requires that all drivers have liability insurance to operate a vehicle legally. The minimum amount of liability insurance required is $25,000 for bodily injury per person, $50,000 for bodily injury per accident, and $10,000 for property damage. However, despite this requirement, many drivers in Missouri do not have insurance.
This is where uninsured motorist coverage comes into play. If a driver with liability insurance is involved in an accident with an uninsured driver, the uninsured driver is responsible for paying for the damages. However, if the uninsured driver cannot pay for the damages, the victim's uninsured motorist coverage will kick in to cover the costs.
In Missouri, uninsured motorist coverage is divided into two types: uninsured motorist bodily injury (UMBI) and uninsured motorist property damage (UMPD). UMBI covers medical expenses, lost wages, and other damages resulting from injuries sustained in the accident. UMPD covers damage to the victim's vehicle and other property.
Drivers in Missouri can also opt for underinsured motorist coverage (UIM). UIM covers drivers who are involved in an accident with a driver who has liability insurance, but the insurance coverage is not enough to cover the costs of the damages. For example, if the at-fault driver has a liability insurance policy with a limit of $25,000, but the damages from the accident are $50,000, the victim's UIM coverage will cover the remaining $25,000.
Missouri law requires that insurance companies offer uninsured motorist coverage to their policyholders. However, drivers can opt-out of the coverage by signing a waiver. While opting out may lower a driver's monthly insurance premium, it also leaves them vulnerable to financial losses in the event of an accident with an uninsured or underinsured driver.
If a driver chooses to opt-out of uninsured motorist coverage in Missouri, they must do so in writing. The waiver must include the driver's name, policy number, and a statement acknowledging that they understand the risks of opting out of the coverage.
If you need help navigating the confusing process of insurance negotiations let Apex Law help. We’re pros in maximizing claim value and holding insurance companies accountable.
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