Getting into an accident is frustrating. However, the situation is worse when the driver who causes the accident does not have sufficient liability coverage. The nightmare scenario is if the individual has no insurance or leaves before you can get their information. This is where uninsured or underinsured car insurance comes into play. It provides you protection in the event you have an accident with an irresponsible driver.
How Uninsured Motorist Insurance Works
In the scenario where you are in an accident that is not your fault, you would typically file a claim with the at-fault driver’s car insurance company. Your car gets fixed, and you get compensation for lost wages or medical expenses. There is no money out of your pocket.
However, what happens if the driver who hit you does not have car insurance or if they don’t have sufficient car insurance to cover the damage? These are not uncommon scenarios. An uninsured motorist accident attorney will likely see several cases that fall into this scenario each year. In many places, the minimum liability insurance requirements do not provide sufficient coverage to cover a car accident. This is why many drivers opt to get underinsured or uninsured motorist coverage to protect their finances if an accident is caused by a driver who does not have sufficient insurance.
What Is the Difference between Uninsured and Underinsured Coverage?
Underinsured motorist coverage will cover your expenses if you are hit by a driver who does have insurance but does not have sufficient insurance to cover the costs related to the crash. In some cases, underinsured and uninsured mortgage coverages are packaged together as a bundle.
The definition of underinsured will vary from state to state. However, it is typically a driver who has auto liability insurance, but the liability limits are low so that they won’t cover your bills after an accident or the liability limit is less than or equal to what your uninsured motorist insurance will cover.
Types of Uninsured and Underinsured Motorist Coverage
Like most types of auto insurance, uninsured and underinsured coverage can be divided into two categories. There is bodily injury and property damage.
Underinsured motorist bodily injury will cover any injuries you sustained and injuries suffered by people in your vehicle. This includes pain and suffering, lost wages, and medical bills. Drivers should remember that medical payments (Med Pay) and personal injury protection (PIP) may not provide sufficient coverage if you are in an accident with an uninsured or underinsured driver.
Underinsured motorist insurance can protect your car if someone hits you and doesn’t have enough insurance when it comes to property damage. For example, there could be a driver who causes a three-car pileup, there is a lot of damage, and the person who is responsible has low limits. Their coverage will not be enough to repair your vehicle, so this is where uninsured or underinsured insurance kicks in and covers things like your collision deductible, car rental, and other out-of-pocket costs.
Get into a car accident is frustrating enough on its own. Getting into a car accident with someone who lacks insurance can cause a whole host of additional headaches. For this reason, underinsured and uninsured motorist insurance is a good idea to consider.