Issue #16: Rhythms of the road

Dear rider: Why you need UIM

When a software engineer was struck by a driver making an illegal left turn at Arguello and California Street, the negligence was clear — the driver was even cited at the scene. However, the driver carried only $50,000 in liability insurance. For a high-level athlete facing a permanent shoulder deformity, potential surgery, and a total loss of his 600-miles-per-month cycling life, $50,000 wouldn’t even begin to cover the long-term impact.

Fortunately, our client had his own automobile insurance policy with a $250,000 limit. Why is an auto policy important for cyclists, even ones that live car-free? Because auto policies contain what is called underinsured/uninsured motorist coverage, known in the industry as UIM coverage, that will cover you if you are struck by a vehicle even if you are on a bike, walking, on a scooter, or in someone else’s car.

Because of our client’s wise insurance planning we were first able to secure the initial $50,000 from the driver’s insurance and then successfully pursued the remaining $200,000 from his own UIM policy. This brought the total recovery to $250,000 — five times what the at-fault driver’s policy alone would have provided. It is the difference between a fair recovery and a financial catastrophe, and it’s why we urge every rider to check their UIM limits today. Have a question about the right amount of coverage? The simple answer is to get as much as you can afford.

You can find more information on insurance strategies for cyclists here.