8.4 Uninsured/UnderInsured Motorists Coverage Copy

The UM section covers the named insured and the named insured’s resident family members. It also covers anyone else while occupying the insured’s covered auto, finally, it covers consequential damages for BI that a third party sustains as a result of the uninsured driver’s negligence.

THE PAP DEFINES FOUR DIFFERENT TYPES OF” UNINSURED” VEHICLES. IT ALSO SPECIFIES SIX SITUATIONS THAT DO NOT QUALIFY AS UNINSURED.

• The first type of uninsured vehicle, obviously, is a CAR to which no insurance policy or bond applies at the time of the
• The second definition is an AT-FAULT DRIVER WITH BI lower than the state minimums where the named insured principally garages his
• A “HIT AND RUN” vehicle is the third definition of

The policy makes it clear that contact with the at-fault car is necessary. However, some states have waived the contact requirement in the event of a “phantom car.” The PAP provides UM coverage in a hit and run situation to the named insured and resident family members. It covers them when any vehicle which they occupy is struck by an uninsured driver. It also covers them as pedestrians when hit by an uninsured driver.

• Finally, it covers OTHERS IN THE NAMED INSURED’S COVERED AUTO:

In the final definition of uninsured the at-fault party has an insurance policy, but the insurer, for some reason, denies coverage to its customer. The reason for the denial is immaterial. If an at- fault driver’s insurance company denies coverage to its customer, then the injured party may make a claim under his own policy for uninsured motorist’s coverage. The second half of definition four involves insolvency. If the at-fault party’s insurer is insolvent at the time of the accident-or if it becomes insolvent prior to settling with the injured party-then the injured party may make a claim under his UM coverage.

Excluded Uninsured Motor Vehicles

As mentioned, the PAP lists six different types of vehicles that do not qualify as uninsured.

1. The first is any vehicle owned by or furnished to the named insured or any family member. If the named insured is injured while riding in a car he owns, but does not insure for UM, he may not collect UM coverage from any of his other cars on which he does carry UM.  Likewise, if the named insured is riding in his company-provided car that is not insured for UM, he may not collect UM from any policy covering his own cars.
2. The second type of vehicle that does not meet the definition of “uninsured” is one that is covered by a “self-insurance” plan, as defined in the state code. However, if the self-insurance plan is or becomes insolvent, then the insured may collect under his UM.
3. A vehicle owned or operated by any governmental unit or agency is the third classification that does not meet the definition of “uninsured” under the PAP.
4. The fourth type of vehicle that does not qualify as uninsured is one that is operated either on rails or on crawler treads.
5. A vehicle that is designed for use off public roads is not considered “uninsured” while its operator is using it as intended–off public roads. Once it enters onto public roads, it would meet the definition of uninsured vehicle.
6. The final class of vehicle that does not meet the definition of uninsured is any vehicle that is located or used as a residence or premises.

UM EXCLUSIONS

The following exclusions apply to UM coverage:

• There is no UM coverage for any insured injured in or struck by a vehicle which that insured owns, but which he does not insure for UM coverage. This exclusion says it includes a trailer when used with such a car.
• Family members of the named insured cannot collect UM under the primary policy if injured in or by a car the named insured owns, but has covered elsewhere on a primary basis.If the injured party settles with the at-fault party without the consent of the insurer, no UM is
• If the injured party settles with the at-fault party without the consent of the insurer, no UM is payable.
• No one may collect UM while the covered vehicle is being used as a “public or livery” conveyance. This exclusion does not apply to a “car pool” arrangement.
• No one may collect UM while he is using a vehicle “without a reasonable belief” that he is entitled to do so. However, the exclusion does not apply to a family member using a car owned by the named insured.
• The policy does not pay UM benefits if the injured person is entitled to state-mandated workers compensation or disability benefits.
• UM coverage steps in to pay damages that an insured is entitled to collect from an uninsured driver. If the injured driver sued the other party and won, he might be awarded compensatory and/or punitive damages. However, the PAP’s UM coverage specifies that it only covers compensatory damages, not punitive damages.

UNDER INSURED MOTORISTS COVERAGE (UM)

As mentioned earlier, some states mandate the UM to be offered to every insured. In other states, a car that is underinsured automatically meets the definition of uninsured,” thus triggering coverage.

UNINSURED MOTORISTS PROPERTY DAMAGE COVERAGE (UMPD)

While the intent of UM in most states is to cover bodily injury done by an uninsured driver, some states require that uninsured motorists’ property damage (UMPD) be offered. Such coverage pays to repair the insured’s car when damaged by an uninsured driver. However, if an insured carries a collision on his ear, UMPD coverage is unnecessary.