We’ve all heard horror stories of someone badly injured in a car accident by a driver with little-to-no car insurance. As the victim’s medical bills start to accumulate, they’re often without sufficient funds to cover accident-related injury treatment, lost wages after being out of work for recovery, and other financial burdens. 

Kentucky laws state all drivers must carry adequate insurance, including personal injury or PIP coverage, to help provide for expenses after a car wreck. Unfortunately, this isn’t always the case. So the skilled personal injury legal team at Skeeters, Bennett, Wilson & Humphrey always recommends our clients consider uninsured and underinsured motorist (UM/UIM) coverage. 

What Is Uninsured and Underinsured Motorist Coverage?

UM/UIM coverage is designed to help victims of car crashes caused by a person who either doesn’t have auto insurance or has a policy with liability limits that are too low to cover the cost of personal injury and property damages. This additional coverage to your automobile policy helps pay for various bills associated with the crash that would otherwise become considerable out-of-pocket expenses. 

In Kentucky, policyholders can opt out of this coverage by stating so in writing. But this isn’t advisable. No-fault PIP coverage is only $10,000 total to cover medical expenses and a scant amount of lost wages due to accident recovery. You want to make sure you’re protected in the event of more serious circumstances. 

Levels of Uninsured and Underinsured Motorist Coverage

Generally, a UM/UIM policy addition covers the driver and passenger bodily injury that occurred in the insured car at the time of the crash. Each carrier’s scope of coverage is different, so discuss it in detail with your insurance representative.

The limits by law in Kentucky for uninsured and underinsured motorist coverage range anywhere from $25,000 to $1 million. Factors for determining the amount of coverage include: 

  • The scope of your medical insurance
  • Your car’s worth
  • If your employer offers access to short-term and long-term disability 

It's common to have a lot of questions after a car accident. If you or a loved one experienced a collision with an at-fault driver without sufficient insurance, consult a qualified legal team to help. You might be eligible for financial recovery to support additional medical treatments, follow-up care, accident-related expenses, and lost income.