Underinsured Motorist Coverage: What Is It?
Most states require auto insurers to automatically include insurance coverage for underinsured motorists on auto insurance policies. You have to sign a form rejecting the coverage if you do not want it.
States are doing that because the cost of treating injuries often exceeds the state-mandated insurance coverage for bodily injuries. For example, California only requires $15,000 in bodily injury protection per person and $30,000 total per accident to legally drive in the state. The property damage minimum only is $5,000.
With such low limits, an accident easily could cause much more damage to another motorist’s vehicle and run up more than $15,000 in medical costs for a bodily injury. If the offending motorist only has state minimums, you might be liable for the difference and need a car accident attorney to help file legal claims against the offending driver.
How Underinsured Motorist Coverage Helps
You might be injured, or your vehicle severely damaged or totaled in an accident caused by another driver. You also might have one or more passengers who suffer bodily injuries.
The costs of repairing your vehicle and treating injuries could easily surpass the auto insurance coverage on the vehicle driven by the offending motorist. When the auto insurance coverage is insufficient to cover the costs, you either need a car accident attorney to file legal claims or underinsured motorist coverage.
The underinsured motorist coverage would pay excess costs up to policy limits, which could be much higher than what the offending driver might have to cover your bodily injuries and property damage. The other option is to retain a car accident attorney to file a legal claim against the negligent driver and owner of the offending vehicle.
Two Types of Underinsured Motorist Coverage
Underinsured motorist coverage is just one of two types of insurance protection that you get from the same policy. The other is for uninsured motorist protection. Unfortunately, many drivers illegally use vehicles that do not have auto insurance protection.
The lack of insurance coverage could make the matter a legal one between you and the offending driver and anyone who might own that vehicle. Fortunately, uninsured motorist coverage also includes uninsured motorist protection for you, your vehicle, and any passengers.
Uninsured Motorist Defined
Anyone driving an uninsured vehicle clearly is an uninsured motorist, but so are hit-and-run drivers. When a driver causes an accident, leaves the scene, and cannot be identified, the law says that person qualifies as an uninsured motorist. So is anyone who might be excluded from coverage on a vehicle but still drives it.
Underinsured/uninsured motorist coverage can protect you and any passengers up to policy limits. The insurance protection provides you with a safety net against liability for the costs of an accident you did not cause.
Categorised in: Personal Injury Lawyer
