The law of insurance coverage is complicated and is governed by numerous statutes and Virginia Supreme Court decisions.  Indeed, some lawyers specialize in insurance coverage due to the complexity of coverage issues. The following is a brief overview of automobile insurance coverage. Liability Insurance Coverage Liability policies provide coverage for damages arising from the ownership, maintenance, or use of a motor vehicle.  Accordingly, if a driver is negligent and causes a collision which injures someone else, the injured person can recover from the negligent driver’s liability insurance carrier.  A typical liability policy will cover the named insured and any relative of the named insured who is also a member of the household.  Such policies also cover identified vehicles and anyone using the vehicles with the express or implied permission of the owner.  For example, if a son or daughter of the named insured is driving the named insured’s car with permission and causes an accident, then they will be covered by the liability insurance policy to the same extent as the named insured. Liability insurance policies typically provide coverage for all damages that an insured may be legally required to pay.  Accordingly, an injured party may recover many types of damages.  Also, liability policies usually provide coverage for punitive damage claims. Whether someone is “using” a motor vehicle at the time of an accident, and accordingly liability coverage applies, is sometimes disputed issue.  Uninsured/Underinsured Motorist Insurance (“UM/UIM Coverage”) Uninsured motorist coverage (“UM”) provides coverage to a person who is injured by an unknown driver or an uninsured river.  UM coverage is provided by the injured person’s own insurance company.  When a person is injured by an uninsured motorist who has no liability insurance coverage, the injured person can file a claim against their own insurance company.  Likewise, where a person is injured by an unknown driver, the injured person can make a claim for UM benefits from their own insurance company. Similarly, underinsured motorist coverage (“UIM”) provides coverage to a person who is injured by a negligent driver who has some liability coverage available, but the negligent party’s liability limits are less than the injured person’s UM limits.  Accordingly, in addition to making a claim against the negligent party’s insurance company, an injured person can make a claim against his or her own insurance company. In other words, UM/UIM coverage provides at least some, or sometimes additional , insurance coverage to an injured person, and is provided by the injured person’s own insurance company.  In general, if you are injured by (a) an unknown driver, (b) an uninsured driver, or (c) a driver with liability coverage less than your own liability coverage, then you will have UM/UIM coverage through your own insurance company.   UM/UIM coverage provides coverage to compensate the same damages as liability coverage does.  Accordingly, you can make the same claims for damages against the UM/UIM carrier (such as medical bills, lost wages, pain and suffering, etc.) as you can against a liability coverage carrier. In most cases, the amount of UM/UIM coverage available is equal to the injured person’s liability coverage.  In other words, if the injured person’s insurance company provides him with $300,000 in liability coverage, then usually the insurance company will also provide him with $300,000 in UM/UIM coverage. To determine the amount of UM/UIM coverage available, you subtract the total amount of liability coverage from the total amount of UM/UIM coverage available.  Say, for example, you get into an accident with a negligent driver.  You have $100,000 in medical bills.  The negligent driver has liability coverage of $25,000.  Without UM/UIM coverage, the only available insurance coverage to you would be the negligent driver’s $25,000 liability policy.  However, say your own insurance policy provides you with $300,000 in liability coverage; in most circumstances, this means that you also have $300,000 in UM/UIM coverage.  To determine the amount of UM/UIM coverage available to you, subtract the total liability coverage ($25,000) from the total UM/UIM coverage ($300,000).  Accordingly, you have $275,000 in UM/UIM coverage from your insurance company.  What does this mean?  Say you obtain a verdict for $500,000.  The first $25,000 will be paid by the negligent driver’s insurance company.  Then next $275,000 will be paid by your own insurance company pursuant to your UM/UIM policy.  The remaining $200,000 would have to be paid by the negligent driver. As with liability coverage, there are numerous legal issues that can arise in UM/UIM coverage scenarios, such as whether the injured person was or was not using a vehicle when the accident occurred; whether there are multiple UM/UIM policies available to be “stacked,” which would allow for more insurance coverage; if there are multiple available policies, which have priority; what policies apply if the injured person was a passenger and not a driver.  Medical Payments Coverage Medical payments coverage provides for coverage to reimburse an injured person for their medical bills up to a certain amount.  Unlike many states, Virginia does not require mandatory medical payments coverage.  As with UM/UIM coverage, this type of coverage is provided by the injured person’s own insurance company.  Typically the limits of coverage are $3,000 or $5,000, meaning that the insurance company will pay for the medical bills up to that amount. It does not matter if the medical bills have already been paid for by health insurance.  The insurance company is still obligated to pay the amount of the bills (up to the amount of coverage) even if the bills have already been paid for.  It also does not matter if the injured person later receives additional compensation for the bills (for example, from a settlement).  The insurance company is not entitled to reimbursement for payments made pursuant to medical payments coverage We do not charge clients for advocating claims for medical payments coverage.

Call Today

(877) 276-3870 (toll free)
(804) 897-3950

10710 Midlothian Turnpike
Suite 304
Richmond, VA 23235
info@buccidix.com

 


Q: What Should I Know About Insurance?

A: The law of insurance coverage is complicated and is governed by numerous statutes and Virginia Supreme Court decisions.  Indeed, some lawyers specialize in insurance coverage due to the complexity of coverage issues.

The following is a brief overview of automobile insurance coverage.

Liability Insurance Coverage

Liability policies provide coverage for damages arising from the ownership, maintenance, or use of a motor vehicle.  Accordingly, if a driver is negligent and causes a collision which injures someone else, the injured person can recover from the negligent driver’s liability insurance carrier. 

A typical liability policy will cover the named insured and any relative of the named insured who is also a member of the household.  Such policies also cover identified vehicles and anyone using the vehicles with the express or implied permission of the owner.  For example, if a son or daughter of the named insured is driving the named insured’s car with permission and causes an accident, then they will be covered by the liability insurance policy to the same extent as the named insured.

Liability insurance policies typically provide coverage for all damages that an insured may be legally required to pay.  Accordingly, an injured party may recover many types of damages.  Also, liability policies usually provide coverage for punitive damage claims.

Whether someone is “using” a motor vehicle at the time of an accident, and accordingly liability coverage applies, is sometimes disputed issue. 

Uninsured/Underinsured Motorist Insurance (“UM/UIM Coverage”)

Uninsured motorist coverage (“UM”) provides coverage to a person who is injured by an unknown driver or an uninsured river.  UM coverage is provided by the injured person’s own insurance company.  When a person is injured by an uninsured motorist who has no liability insurance coverage, the injured person can file a claim against their own insurance company.  Likewise, where a person is injured by an unknown driver, the injured person can make a claim for UM benefits from their own insurance company.

Similarly, underinsured motorist coverage (“UIM”) provides coverage to a person who is injured by a negligent driver who has some liability coverage available, but the negligent party’s liability limits are less than the injured person’s UM limits.  Accordingly, in addition to making a claim against the negligent party’s insurance company, an injured person can make a claim against his or her own insurance company.

In other words, UM/UIM coverage provides at least some, or sometimes additional , insurance coverage to an injured person, and is provided by the injured person’s own insurance company.  In general, if you are injured by (a) an unknown driver, (b) an uninsured driver, or (c) a driver with liability coverage less than your own liability coverage, then you will have UM/UIM coverage through your own insurance company.
 
UM/UIM coverage provides coverage to compensate the same damages as liability coverage does.  Accordingly, you can make the same claims for damages against the UM/UIM carrier (such as medical bills, lost wages, pain and suffering, etc.) as you can against a liability coverage carrier.

In most cases, the amount of UM/UIM coverage available is equal to the injured person’s liability coverage.  In other words, if the injured person’s insurance company provides him with $300,000 in liability coverage, then usually the insurance company will also provide him with $300,000 in UM/UIM coverage.

To determine the amount of UM/UIM coverage available, you subtract the total amount of liability coverage from the total amount of UM/UIM coverage available.  Say, for example, you get into an accident with a negligent driver.  You have $100,000 in medical bills.  The negligent driver has liability coverage of $25,000.  Without UM/UIM coverage, the only available insurance coverage to you would be the negligent driver’s $25,000 liability policy.  However, say your own insurance policy provides you with $300,000 in liability coverage; in most circumstances, this means that you also have $300,000 in UM/UIM coverage.  To determine the amount of UM/UIM coverage available to you, subtract the total liability coverage ($25,000) from the total UM/UIM coverage ($300,000).  Accordingly, you have $275,000 in UM/UIM coverage from your insurance company. 

What does this mean?  Say you obtain a verdict for $500,000.  The first $25,000 will be paid by the negligent driver’s insurance company.  Then next $275,000 will be paid by your own insurance company pursuant to your UM/UIM policy.  The remaining $200,000 would have to be paid by the negligent driver.

As with liability coverage, there are numerous legal issues that can arise in UM/UIM coverage scenarios, such as whether the injured person was or was not using a vehicle when the accident occurred; whether there are multiple UM/UIM policies available to be “stacked,” which would allow for more insurance coverage; if there are multiple available policies, which have priority; what policies apply if the injured person was a passenger and not a driver. 

Medical Payments Coverage

Medical payments coverage provides for coverage to reimburse an injured person for their medical bills up to a certain amount.  Unlike many states, Virginia does not require mandatory medical payments coverage.  As with UM/UIM coverage, this type of coverage is provided by the injured person’s own insurance company.  Typically the limits of coverage are $3,000 or $5,000, meaning that the insurance company will pay for the medical bills up to that amount.

It does not matter if the medical bills have already been paid for by health insurance.  The insurance company is still obligated to pay the amount of the bills (up to the amount of coverage) even if the bills have already been paid for.  It also does not matter if the injured person later receives additional compensation for the bills (for example, from a settlement).  The insurance company is not entitled to reimbursement for payments made pursuant to medical payments coverage

We do not charge clients for advocating claims for medical payments coverage.


Bookmark and Share

Free Online Evaluation

Name:

Phone:

Email:

Tell us more:


Bucci & Dix
10710 Midlothian Turnpike
Suite 304
Richmond, VA 23235
Phone: (804) 897-3950
Fax: (804) 379-0173

Get Directions





M. Scott Bucci
online at
Super Lawyers
visit superlawyers.com






Testimonials

View All

©2010 Bucci & Dix, All Rights Reserved, Reproduced with Permission
Attorney website design by Foster Web Marketing, the best attorney website design solution on the Web offering search engine optimization for attorneys, lawyer website design, video for attorneys, and more.
Get SEO Tips from The Attorney Internet Marketing Blog
Richmond Virginia Divorce Lawyer | Richmond Virginia Child Custody Laywer | Spousal Support Attorney Richmond Virginia | Virginia Personal Injury Lawyer | Car Accident Attorney Richmond | Richmond Slip and Fall Injjury Lawyer | Virginia Employment Lawyer | Virginia Equitable Distribution Attorney
Served By: A