Underinsured/Uninsured Motorists Exhaustion Requirements

Underinsured motorist and uninsured motorist provisions in auto insurance policies often contain language stating that the underinsured or uninsured motorist coverage will not become available until the policy limits of all insurance policies that are applicable to the accident have been exhausted by the payment of judgments or settlements. Such exhaustion requirements are included in the policy because of the substitute or supplemental nature of the coverage and the understandable desire of the insurer to assure that all other available coverage has been applied before it is obligated to pay benefits under the underinsured or uninsured motorist provisions of the policy.

Violation of Traffic Laws as Proof of Negligence

In an automobile accident action against a driver for damages suffered in a car collision, the driver's violation of a traffic law can be evidence of his or her negligence. The law calls negligence based upon the violation of a specific requirement of law "negligence per se." Negligence per se means that as a matter of law negligence existed. While the violation of a traffic law is negligence as a matter of law, the violation does not mean that the driver is liable unless the negligence was the proximate cause of the plaintiff's injury. Negligence is ordinarily a question for a jury. It only becomes a question of law when a court determines that only one conclusion can reasonably be drawn from the evidence. If the violation of the traffic law is treated as negligence per se, the question of negligence will not be given to the jury.

Auto Insurance Coverage for Nonowned Vehicles

At times a driver may have permission to use an automobile that he or she does not own. If a driver is in an accident while driving a non-owned car, the driver's insurance policy will generally cover the non-owned vehicle.

Underinsured/Uninsured Motorists Stacking Provisions

Underinsured motorist coverage, sometimes abbreviated UIM, and uninsured motorist coverage, sometimes abbreviated UM, are included in motor vehicle insurance policies as a consequence of the fact that many owners and operators of cars and trucks either do not maintain adequate insurance coverage on their vehicles or operate those vehicles without any insurance coverage at all.

Setoffs and Uninsured Motorist Insurance Policies

Some state statutes allow uninsured motorist insurance companies to setoff amounts that an insured received from workers compensation, Social Security, and settlements with a liability insurance company. Therefore, if an insured were injured in a car accident while driving in the course of his or her employment, the insurance company could offset the uninsured motorist benefits in the full amount of the insured's workers compensation judgment.