UIM coverage

UIM Coverage Under Automobile & Umbrella Policy

Zack Peterson

February 2015

Kingston v. State Farm
http://www.utcourts.gov/opinions/appopin/kingston150205.pdf

The Court of Appeals affirms the district court’s grant of summary judgment to State Farm on a question of UIM coverage under an automobile policy and a separate umbrella policy.

auto-insurance-policy imageThe substitution of a vehicle and an automatic renewal of a policy do not constitute “new policies” which trigger a renewed obligation to secure an insured’s consent to lower UIM limits.  The insured’s initial waiver carries forward.  An umbrella policy is not an automobile policy and subject to the same requirements of a policy for automobile coverage.  Also, the insured was not entitled to coverage under the umbrella policy because the automobile policy did not contain sufficient coverage for UIM benefits to trigger the umbrella policy.

The substitution of a vehicle and an automatic renewal of a policy do not constitute “new policies” which trigger a renewed obligation to secure an insured’s consent to lower UIM limits.  The insured’s initial waiver carries forward.  An umbrella policy is not an automobile policy and subject to the same requirements of a policy for automobile coverage.  Also, the insured was not entitled to coverage under the umbrella policy because the automobile policy did not contain sufficient coverage for UIM benefits to trigger the umbrella policy.