How to Deal with a Hit and Run - Don’t Be a Halle Berry

In February of 2000, the actress Halle Berry became perhaps the most famous (or infamous) hit-and-run perpetrator in the history of the world. The renowned beauty ran a red light, struck another vehicle, and left the scene before police arrived. But while some decry the injustice of the legal system as it pertains to superstars, Ms. Berry did not get off as easily as other celebrity assailants (I’m not naming any names!) - after being identified, she plead no contest and was held legally accountable for her crime, albeit a misdemeanor.

But what if Catwoman hadn’t been nabbed? Who would Halle’s victim have been able to turn to? The answer is “no one,” unless he had uninsured motorists insurance.

Uninsured Motorists Coverage

Despite its name, uninsured motorists (UM) insurance is not for the benefit of the uninsured motorist - it is for the financial protection of anyone an uninsured motorist injures. UM is not covered in most basic insurance packages, and usually needs to be purchased separately.

In the case of a hit-and-run in which the assailant cannot be identified, UM covers property damage, hospital bills, and lost wages. It does not, however, grant the injured party the right to punitive or exemplary damages.

What About ‘No Fault?’

Clearly “no-fault” insurance allows you to collect from your own insurance company if you are the victim of a hit-and-run, but how does no-fault apply to the perpetrator? If he is identified and it is determined that he doesn’t have insurance, even in (most) no-fault states, the victim’s insurance company can sue the uninsured driver to recover damages. In many no-fault states, if you don’t have at least the minimum insurance required by law, “no-fault” means “your fault.”

How Do I Know if I Have UM Coverage?

If don’t know whether you have UM coverage, chances are that you don’t. However, the one way to tell for sure is by locating your “dec pages,” which is the (usually) one or two page document that explains your insurance coverage - you probably have it in a filing cabinet somewhere. Your dec pages spell out all of the coverages that you have, and if you don’t have UM, you should probably ask your agent about adding it. Better yet, use the internet to comparison shop for the best deal. If you’ve been working with your local agent for three generations, chances are he takes your business for granted. Shop around and you just might be surprised at the money you can save. Sometimes you can save money even as you simultaneously increase your coverage!

Also, it’s important to point out that there is a difference between uninsured motorists coverage, and underinsured motorists coverage. Each serves its own purpose, and both are important.

Back to Halle Berry

Insurance is a financial instrument. Too few people view insurance that way (especially car insurance), and it is to their detriment. You need to be getting value for the insurance premiums you are paying every month, and the only way to ensure that you’re doing so is to stay on your toes. Compare the rates and available coverages offered by at least three insurance agencies, and review your policy no less than twice a year. Unless you have Halle Berry’s bank account, you can’t afford not to!