Uninsured Underinsured Motorists Insurance
If you are involved in a car accident with a driver who has no car insurance or whose car insurance is insufficient, you may find yourself facing unwelcome expenses. It is important to have uninsured / underinsured motorists insurance to protect you if such an event occurs.
Uninsured motorist coverage is required in some states, but not in others. It depends, therefore, on the law of the state in which you live whether your car insurance will protect you if you are involved in an accident with a driver who has no car insurance at all or insufficient to cover costs. If uninsured motorist coverage insurance is not automatically included in your car insurance, you can elect to pay a little extra and take it out, for the sake of the peace of mind it will bring you.
With uninsured / underinsured motorists insurance, you have the comfort of knowing your insurance company will pay the cost of expenses that a driver without car insurance is unable to pay if you are involved in an accident. This type of car insurance will probably not cover all the expenses involved, but will go a long way towards helping you meet your costs. Medical bills and loss of wages are among the expenses you should be able to claim through your uninsured motorist coverage, which will certainly help make life easier. At the same time, you need to be aware that any punitive damages resulting from an accident will probably not be covered by uninsured or underinsured motorist coverage.
Underinsured motorist coverage differs from uninsured motorist coverage in that the person who was responsible for the accident has some car insurance, but not enough to cover the costs that result for you. The insurance of the person who caused the crash may, for example, pay $20,000 for each person injured, but your expenses may amount to $50,000 or more. The underinsured motorist coverage therefore results in a shortfall that you will have difficulty obtaining unless you had the forethought to take out uninsured / underinsured motorists insurance.
If you have uninsured / underinsured motorists insurance in the scenario described, you will first be able claim the $20,000 from the person who caused the accident. Then, rather than going to the expense and trouble of trying to get the remainder from the same person, who probably would not have enough money to pay it anyway, your uninsured / underinsured motorists insurance allows you to claim at least the difference from your car insurance company. Various states have different rules about how this type of car insurance operates. Some will allow you to add on the other person’s insurance limit to the full amount of your costs, so in the example given, you could collect a total of $70,000. In other states, you would have to subtract the $20,000 from your amount, giving you a maximum of $30,000 to claim from the insurance company. In either case, with uninsured / underinsured motorists insurance, you will have the full cost of your expenses.
There are two type of uninsured / underinsured motorists insurance you can take out. One is bodily injury coverage. This provides you with uninsured motorist coverage or underinsured motorist coverage, if you or a passenger is injured as the result of an accident caused by a driver who has no car insurance or whose insurance is insufficient to cover the resulting expenses. These expenses could include medical bills and loss of wages.
The other type of uninsured / underinsured motorists insurance that can benefit you is property damage coverage. If the at-fault driver has no car insurance or has not taken out enough to cover the damage to your vehicle, this type of uninsured / underinsured motorists insurance can help you in such cases. It should not be confused with personal injury protection, an insurance coverage that pays your medical bills if you are involved in an accident. This type of insurance may not be needed if you have medical insurance, although it may be compulsory in states with no-fault laws. Some states also require drivers to take out uninsured / underinsured motorists insurance, but even if they don’t, it is a sensible way to protect yourself from the expense and worry that could arise from an accident with a driver with insufficient car insurance coverage.
A car accident is unpleasant at any time, but even more so if you have been injured or your vehicle has been damaged. If you then find the person who was responsible for the accident does not have insurance, the scenario will seem even worse. In such a situation, what are the financial problems you could be facing?
This situation may seem a remote possibility when you consider the fact that only about 14 per cent of the drivers in the United States drive without car insurance. Although it may be remote, it is, however, still a possibility that you could find yourself involved in an accident with such a person. If it happens to you, this will be the time when you have to decide whether to make a claim against the person whose negligence resulted in the accident. Having uninsured coverage can make all the difference to your prospects.
The problem you face when considering whether to bring a claim against a person without insurance is deciding whether the outcome will justify the time and expense involved. A person who drives without car insurance is unlikely to have the money to meet your needs. It is at this stage that you will be happy with yourself if you have previously made the decision to include uninsured / underinsured motorists insurance in your policy. With uninsured motorist coverage or underinsured motorist coverage, you can be confident of receiving the financial help you need.
It is quite likely that the issue of car insurance may not be the first thing that comes to your mind when you are involved in an accident. You may have injuries or, at least, some feelings of emotional distress resulting from the shock of the collision. If you have any passengers, you will also be concerned for their welfare, and will then need to ascertain whether the other driver involved has been hurt, as well as the extent of damage to your vehicles. Assuming, however, that you are well enough to exchange information with the other person, you should do this as soon as possible, and before you leave the place where the accident occurred. This will help protect you if the other driver does not have car insurance and will make future dealings with your insurance company easier.
You should, therefore, obtain the other driver’s contact information and car insurance details. Make sure you provide your insurance company with all the relevant information. Keep the contact details, because if you have uninsured / underinsured motorists insurance and the driver is not insured, you may need to provide your insurance company with a signed statement to this effect before you can make a claim for compensation. If you find the other driver does not have sufficient insurance to cover your claim, you should be able to arrange to have the balance paid by your insurance company as long as you have uninsured / underinsured motorists insurance.
Making a claim on your uninsured / underinsured motorists insurance can be time consuming and complex. If you feel you don’t have time or knowledge to go through the process, you could benefit from the help of an attorney who has experience with car insurance claims. Such a person can answer your questions about where you stand in regard to the costs arising from an accident caused by a driver with no insurance or insufficient coverage. An attorney can also handle paperwork for you and explain the various steps that have to be taken when dealing with matters involving underinsured or uninsured motorist coverage situations.
When you are making a claim on uninsured / underinsured motorists insurance, there may also be issues, such as the amount of the damage to the vehicles or the extent of your injuries that require the provision of evidence. You could also find there is a dispute about whether you or the other driver were to blame for the accident. Rather than getting into a situation where you are not sure if you can claim on your uninsured / underinsured motorists insurance, you will find it helpful in such cases to hire an attorney to help you. While you can probably work out a simple claim yourself with your car insurance company, you can benefit from the help of an attorney when more complex issues are involved.
Like everything else you buy, it is important to understand how your car insurance works. In some states, you must be provided with uninsured / underinsured motorists insurance as part of your car insurance policy. This means that if you are involved in an accident that is the fault of the other driver, and that driver is uninsured or underinsured, you will have financial protection. Otherwise, you could try to make a claim against the driver, but it is unlikely that you would be able to obtain enough money to meet your needs. When, however, you have uninsured motorist coverage or underinsured motorist coverage, you are protected from such eventualities.
If you know just what protection your uninsured / underinsured motorists insurance provides, you will know your car insurance rights if you are involved in an accident when you are not at fault and the other driver is underinsured or completely uninsured. The terminology of the policy may seem difficult, but if so, ask someone from your car insurance company to explain it to you. By making sure you have the uninsured coverage and underinsured motorist coverage you require, you will have more peace of mind on the road.
When you take out uninsured / underinsured motorists insurance, you can, if you prefer, take the minimum uninsured coverage. If you want to include a limit of $20,000 uninsured / underinsured motorists insurance in your car insurance policy, you can do so. However, many people are not aware that the difference you pay in uninsured coverage, to have a policy that is worth more, is quite small. For just a few dollars more each month, you can probably buy a policy that is worth about $50,000 in uninsured motorist coverage or underinsured motorist coverage. You will hardly notice the difference in the cost of your car insurance premiums, but the value of your uninsured coverage or underinsured motorist coverage will be much higher.
It is, therefore, well worth checking the prices of uninsured / underinsured motorists insurance with your car insurance company before making a final decision. If you are involved in an accident that causes major damage to your car or, even worse, results in serious injuries to you, and if the driver at fault is uninsured or underinsured, you will be glad of your uninsured / underinsured motorists insurance. It will cost you little in dollars, but will provide you with valuable protection.
Uninsured / underinsured motorists insurance can help you if you are involved in an accident caused by a driver who is uninsured or underinsured. It can also help you in other ways. If, for example, you are a pedestrian who is hit by a car driven by an uninsured or underinsured driver, you can be assisted by having underinsured motorist coverage or uninsured motorist coverage. With enough uninsured coverage, you will be able to recover any medical expenses incurred in the accident. The uninsured / underinsured motorists insurance can also reimburse you for any wages you lose if you are forced to take time off work because of injuries received in the accident.
Your uninsured / underinsured motorists insurance will also cover you if your vehicle is involved in an accident with a hit and run driver. This ensures you are protected if the person at fault cannot be found or has insufficient car insurance to pay your costs. Coping with such problems as loss of wages and medical expenses can be difficult if you are not covered, but with the help of uninsured / underinsured motorists insurance, you will have the financial assistance you need.