An uninsured driver runs into you in a crosswalk and you wind up in the hospital. Who pays for your medical expenses and pain and suffering? Chances are the uninsured driver can't afford to pay. Now suppose that the driver who hit you had the minimum $15,000 liability coverage, but your injuries are serious and your medical expenses alone are well over $15,000. Again, that underinsured driver probably can't afford to pay the rest of your damages. So, who pays the remainder? Will your auto insurance pay them all? Only if you've got uninsured-underinsured (UM-UIM) coverage on your policy.

UM-UIM Insurance
Insurance companies that sell automobile insurance in Pennsylvania are required to offer all customers the option of adding UM UIM coverage to their policies. The uninsured motorist (UM) coverage pays damages when an insured is injured in a car accident caused by another person who does not have liability insurance. The underinsured motorist (UIM) coverage pays when an insured is injured in a car accident caused by another person who has insufficient liability insurance. If you don't have UM-UIM coverage, and you are injured by a uninsured or underinsured driver, your own auto insurance will generally only pay for medical care up to $5,000.

If you're feeling the economic pinch lately, you might be tempted to save a bit of money by reducing your UM-UIM coverage or eliminating it altogether. But the chances that you'll need this coverage are likely to be greater than ever. According to a recent report by the Insurance Research Council, one in six drivers in the U.S. may be driving without insurance by 2010.

(Click anywhere on chart to see full-size version)

The number of uninsured motorists has been steadily decreasing for the past few years, but the economic downturn is expected to greatly increase that number as people lose their jobs. The report found a strong correlation between the percent of uninsured motorists and the unemployment rate:According to the IRC press release:

An increase in the unemployment rate of one percentage point is associated with an increase in the uninsured motorist rate of more than three-quarters of a percentage point. Based on current unemployment rate projections, the percentage of uninsured motorists is expected to rise from 13.8 in 2007 to 16.1 in 2010.

Now more than ever you need to protect yourself and your family. Keep your UM-UIM coverage in place (or add it, if you don't already have it.)

Stacking
If your household has more than one car, you can also increase your coverage by "stacking." "Stacking” your UM UIM coverage means that, in the event of an accident involving an uninsured or underinsured motorist, your total coverage limit will be the combined limits on all of the vehicles insured in your name, whether they are insured under the same policy or under different policies.. Under Pennsylvania law (75 Pa.C.S. §1738), your coverage can be stacked unless you waived stacking in your policy. Waiving coverage will decrease your premiums somewhat but will significantly decrease the coverage limits available to you in case of an accident.

Coverage of Relatives
Even if you don't have an insurance policy yourself, you may still be entitled to UM and UIM coverage if you are in a car accident. This is because the law’s definition of an “insured” includes “a spouse or relative” of a named insured, if the spouse or other relative is “residing in the same household of the named insured.” (75 Pa.C.S. §1702). Pennsylvania courts have clarified the facts and circumstances that make a person a resident relative in automobile insurance policies. A person’s residence is “a factual place of abode.” A residence does not have to be permanent and can simply mean that someone is physically living in the household.

A child who lives part-time with each of the child's divorced or separated parents may even be considered to have two residences for purposes of insurance coverage. One of the simplest ways to secure full coverage for all of your eligible children is to name them as insureds. If you have a child who is not named as an insured on your policy, that child may still be entitled to coverage only if he or she regularly sleeps, eats, and interacts with others at your home.

The BBC reports that, in a first-ever decision, an Australian court has allowed an attorney to serve papers relating to a loan default via the popular social networking site, Facebook. After the couple had missed a court date, and attempts to find them at all known work and residence addresses had failed, the attorney managed to trace them by finding the woman's page on Facebook. Using personal details from her page, he convinced the judge that he had located the correct person. The judge then allowed him to serve the papers via Facebook's private email link.

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