Underinsured Motorist Coverage and Uninsured Motorist Coverage Statute of Limitations Explained
Uninsured motorist coverage and underinsured motorist coverage are essential components of a car insurance policy, providing additional coverage and financial protection in the event of an accident when the other driver lacks sufficient liability insurance. These coverages ensure that you are not left bearing the financial burden if the at-fault driver’s insurance is inadequate or nonexistent.
Understanding the time limits for making claims under these coverages is crucial. In Massachusetts, the statute of limitations for first-party claims, such as uninsured and underinsured motorist claims, begins not at the time of the accident but when the insurance company denies the claim or breaches the policy terms. This means you have a six-year window from the date of the insurer’s breach to file a claim, offering a broader timeframe to seek civil justice compared to the three-year limit for personal injury claims against the at-fault driver.
Types of Coverage
Bodily Injury Coverage
Bodily injury coverage is a critical aspect of uninsured and underinsured motorist coverage. It helps cover medical expenses, lost wages, and pain and suffering resulting from an accident where the at-fault driver’s insurance is insufficient. This coverage ensures that you receive the necessary financial support to recover from injuries without bearing the out-of-pocket costs. For instance, if you are involved in an accident with an underinsured motorist, bodily injury coverage can bridge the gap between the at-fault driver’s liability insurance and your actual medical expenses and lost wages.
Property Damage Coverage
Property damage coverage is another vital component of uninsured and underinsured motorist coverage. It helps pay for repairs to your vehicle, up to its actual cash value, in cases where the at-fault driver’s insurance is insufficient. This coverage is essential for ensuring that you are not left with hefty repair bills after an accident. For example, if your car is damaged by an underinsured motorist, property damage coverage can cover the repair costs after a car accident that exceed the at-fault driver’s insurance limits, providing you with peace of mind and financial protection.
Underinsured motorist coverage and Uninsured motorist coverage statue of limitations explained
I recently received a call from a police officer who had been forced into early retirement in due to injuries he sustained while rescuing a drunk driver involved in a car accident. During our conversation, he explained that at the time of the incident, a fellow officer incorrectly told him he had no right to pursue a claim against the drunk driver. Believing this misinformation, he never looked further into his rights—until recently, when he realized it was far too late to act within Massachusetts’ three-year statute of limitations (SOL) for personal injury claims.
Understanding the timeframe for initiating legal proceedings is crucial to ensure that you do not miss the opportunity to seek compensation.
While the time to pursue a claim against the drunk driver had passed, I explained that his situation wasn’t entirely without recourse. Even when the SOL for claims against the negligent driver has expired, individuals may still have the option to pursue an insurance claim against your own insurance policy.
Public Safety Officers Can Pursue Claims Against Negligent Parties
The law in Massachusetts is unequivocal: state and municipal public safety officers, including police officers, firefighters, and EMS personnel, have the right to pursue claims when injured due to someone else’s negligence. This includes injuries sustained while performing duties in the line of duty.
For more details on this topic, see our articles:
- Massachusetts State Police Troopers Have the Right to Make Personal Injury Claims
- Injured Massachusetts Police Officers Can Make Valuable Claims Against the Persons or Companies Who Injured Them
Officers should never assume they are barred from seeking compensation just because the injury occurred during their duties. Misinformation and assumptions can cost officers their right to fair compensation.
Statute of Limitations for Claims Against Your Own Insurance Company
For car accident claims against your own insurance company (also known as first-party claims) such as Uninsured/Underinsured Motorist (UM/UIM) claims, the SOL does not begin at the time of the accident. Instead, it starts when:
- The insured files a claim with their insurance company, and
- The insurer denies the claim or otherwise breaches the terms of the policy.
Having adequate liability coverage for car accidents is essential to ensure that you are financially protected when making a claim against your own insurance company.
This distinction is crucial because the six-year SOL for first-party claims under Massachusetts General Laws, Chapter 260, Section 2 only begins when the insurer fails to meet its contractual obligations. This means that even if the accident occurred more than three years ago, individuals may still be able to file a UM/UIM claim if the insurer’s breach of contract occurred within the past six years.
Making a Claim After the Statute of Limitations Expires
The statute of limitations for making claims under uninsured and underinsured motorist coverage varies by state, typically ranging from one to six years for civil law cases, including car insurance claims. However, there are exceptional circumstances where the statute of limitations can be tolled or suspended. For instance, if the aggrieved person was a minor at the time of the accident or has filed for bankruptcy, the statute of limitations may be extended.
Failing to make a claim within the statute of limitations generally bars you from seeking compensation for your damages. Therefore, it is crucial to understand the specific statute of limitations in your state and to act promptly after an accident. In some cases, if the statute of limitations has expired, you may still be able to make a claim if you can demonstrate that the delay was due to circumstances beyond your control. However, this is subject to the court’s discretion and is not guaranteed.
In conclusion, understanding the statute of limitations for uninsured and underinsured motorist coverage is essential to ensure you receive fair compensation for your damages. If you are involved in an accident with an uninsured or underinsured driver, consulting with a qualified attorney can help you determine the best course of action and ensure that you make a claim within the appropriate timeframe.
Coverage Limits and Practical Considerations
One critical aspect of first-party claims is that your coverage limits will typically be offset or reduced by the amount of coverage the negligent person who caused the injury had. This serves as a strong reminder to purchase the highest coverage limits your auto insurer offers. If your vehicle is damaged and your policy lacks collision coverage, you may face significant out-of-pocket expenses for repairs.
We strongly recommend that your coverages for bodily injury, uninsured motorist coverage and underinsured motorist coverage (Parts 3, 5, and 12 of your auto policy) be at least $250,000 per person/$500,000 per auto accident:
- Part 3: Protects you against uninsured vehicles (e.g., stolen cars).
- Part 5: Protects other people you might injure.
- Part 12: Protects you against underinsured vehicles (vehicles with insufficient insurance coverage).
Comprehensive insurance is also important as it covers damages to your vehicle from non-collision incidents, providing a financial safety net.
Given how much time police officers spend in cruisers and as pedestrians during details, it is critical to understand that your personal auto insurance policy protects you wherever you go, even while on duty.
For more information on this topic, check out these resources:
- “Got Full Coverage?” article by Attorney Jared Ballin
- Webinar by Attorney Steve Ballin.
What This Means for Individuals with Bodily Injury
The officer’s case underscores the importance of understanding your rights and exploring all avenues for compensation after an injury. Uninsured motorist property damage coverage can help protect you from financial loss if your vehicle is damaged by an uninsured driver. While he was precluded from pursuing a claim against the drunk driver due to the expired SOL, he may still have a viable first-party auto insurance claim under the six-year SOL for contract claims.
Final Thoughts
If you’ve been injured in an auto accident—whether as a civilian or in the line of duty—don’t assume that an expired SOL for direct claims leaves you without options. First-party claims may still be possible, but it’s crucial to act promptly and understand the nuances of your insurance policy.
At Ballin & Associates, LLC, we’re here to help you navigate your options and secure the compensation you deserve. Contact us today for a free and confidential consultation.
