Maine has one of the lowest rates of uninsured drivers in the country. That’s great news for Maine’s road users, who get cheaper uninsured motorist coverage for injuries caused by a hit-and-run/unidentified driver. Still, it doesn’t show the full picture. Many drivers have the minimum mandatory auto insurance coverage. Currently, that rate is $50,000 per person/$100,000 per crash in bodily injury liability, $25,000 in property damage and $2,000 in medical payments. This might sound like a lot, but as your Portland injury lawyers will tell you, it’s often inadequate to reimburse for total losses following a serious Maine car crash. Underinsured motorist (UIM) coverage makes up the difference – between the policy limit of the at-fault driver and your UIM limit.
Don’t assume, however, that when the time comes, the insurer will acquiesce automatically to your requested UIM compensation. Auto insurers actively seek ways to deny or reduce payments – even to their own long-time, safe driver customers. An experienced Portland UIM attorney can advocate for your right to receive full and fair compensation. We can also identify potential acts by insurers – such as vastly undervaluing a legitimate claim or refusing to tell you why they are denying a claim – that might amount to bad faith. If proven, bad faith insurance violations under the Maine Insurance Code can result not only in full crash injury compensation but also attorney fees (which would otherwise come out as a percent of your damage award), court costs AND a penalty of up to 150 percent of that amount.
Although disputes over UIM coverage can often be settled through negotiation (avoiding the time and expense of a trial), it wasn’t long ago a UIM coverage case found its way to the Maine Supreme Judicial Court. The case, Wallace v. State Farm Mutual Insurance Co., involved the question of how an “underinsured motorist” is defined. This is an important technicality of which to be mindful because the definition can differ depending on policy language and it can have a big impact on how much your insurer is required to pay you. Continue reading