Do I really need to make an under-insured motorist claim?

January 30, 2018 6:57 PM

An insurance agent says I need to make an under-insured motorist claim after being injured in a wreck, but the offer his company is making me covers my medical expenses, AFAIK. Why is he saying I need to do this?

I was in a wreck in 2017 and was injured, as were several others. I'm not at fault.

I was driving a borrowed car (my mom's, with permission).

Geico has made me an offer to cover my medical bills and the pain and suffering from the injuries, and the Geico agent said that I now also need to go to my mom's insurance and invoke the under-insured motorist coverage (which she has).

My limited understanding from internet research is that under-insured motorist coverage is for a gap between my actual incurred expenses and what Geico can offer (there was a limits issue with the wreck, with several people injured, some seriously). So why is the agent advising me to make an under-insured motorist claim?

(I will not be suing the at-fault driver. My medical bills were around $1500, so it's not worth it.)

Why is the Geico agent telling me to make this claim? Does it have to do with the limits issue? Am I missing something?

posted by Jennifer S. to Grab Bag (6 answers total)

Most likely the other driver's policy limits have already been reached, so UIM coverage is the only way you get paid. If Geico is your insurance company, they are telling you this because your policy almost certainly has a subrogation clause that means they want your mom's insurance to pay as much of the claim as they can make them since the other driver's insurance is tapped out.

Basically the agent is saying you can just make the claim against your mom's insurance directly or you can have Geico pay you and then fight with your mom's company over who is actually responsible which will end up costing everyone more money in the end.
posted by wierdo at 8:07 PM on January 30, 2018 [1 favorite]

This varies widely by state. Best to speak with a lawyer about this issue, even if you do not plan to sue anyone.
posted by yclipse at 8:22 PM on January 30, 2018

This is the kind of thing that you can talk about with a personal injury lawyer in your state to get an understanding of your rights without necessarily incurring any fee unless you decide to retain the lawyer to proceed with a claim.

I'd encourage you do to so. The "Internet", even AskMeFi is not suited to a proper analysis of your situation.
posted by mygoditsbob at 9:15 PM on January 30, 2018

Best answer: Talk to your Mom's insurance agent-- that's a person who'll be on your side.

I think the Geico person is probably being straight with you per Wierdo's post above, but at the same time, it's a bad idea to take advice from someone who is basically your legal adversary, which the at-fault driver's insurance carrier is.
posted by Sunburnt at 9:43 PM on January 30, 2018 [3 favorites]

Best answer: Not a lawyer, not your lawyer, not your insurance agent, not sure about laws in your jurisdiction.

It's reasonable to question the source here, but I think you're probably getting straightforward, honest advice. Generally UM/UIM coverage picks up any slack when the other party is at fault but they have no insurance, or inadequate coverage for the situation. It's a separate add-on to your policy, usually comparatively low cost (since it's an add-on) and it's always a good idea to have. I've only had to rely on my UM policy for property damage but it never caused my rates to go up (my parked car was hit by unknown drivers. Twice).

You'll need to talk to your mom's insurance company in order to file a claim, so you'll have an opportunity to ask them what this will do to her status with them. The person you talk to might not know every implication, but in broad strokes at least they should be able to tell you what to expect.
posted by fedward at 7:56 AM on January 31, 2018

Response by poster: Looks like Geico made an offer that covers my expenses, but does not cover the FULL VALUE OF THE CLAIM. Either the adjuster didn't explain this well, or I didn't pick up on it, but this is the issue. So the answer is YES, I need to make an under-insured motorist claim, let the two insurance companies hash it out, and with luck, receive more money that I would otherwise.

Also, it looks like making this kind of claim should not make your premium go up: https://www.sallymorinlaw.com/will-making-a-uninsured-or-underinsured-motorist-claim-raise-my-insurance-rates/
posted by Jennifer S. at 1:08 PM on February 1, 2018