An average road user is aware that it’s not every driver you see that has coverage. So what happens if you get involved in a misfortune incident with such drivers? How do uninsured and underinsured coverages come into play in such situations?
Keep reading to learn more.
What are Uninsured and Underinsured Coverages?
Underinsured motorist coverage might help you pay your claims if an uninsured driver hits you. Sometimes, your car policy’s uninsured and underinsured motorist coverages come in single coverage.
Each state defines the term “underinsured” differently. If a motorist is judged to blame in an accident, it is typically because they do not have enough insurance. For example, an uninsured motorist may have auto liability insurance but:
- Liability limits are insufficient to cover your expenditures in the case of an accident.
- Liability limits that are less than or equal to your uninsured motorist policy maximum
How Do Uninsured and Underinsured Coverages Work?
Assume you get into an automobile accident that wasn’t your fault. Most of the time, you’d file a claim with the at-fault driver’s vehicle insurance company and fix your car.
You’ll also receive compensation for any lost wages or medical expenditures. There will be no out-of-pocket expenses.
So what if the driver who sideswiped you is uninsured or has inadequate coverage? Following a car accident, the basic liability insurance requirements may not always offer adequate coverage. Uninsured and underinsured motorist coverage helps protect your money if you’re in an accident an uninsured or underinsured driver causes.
Differences between Uninsured and Underinsured Coverages
Uninsured motorist insurance will protect you if you’re in an accident with a driver who doesn’t have liability insurance.
Underinsured motorist coverage comes in when you’re in an accident with an at-fault driver whose liability limitations are insufficient. In most cases, the at-fault driver’s insurance will cover all damages up to the limits of his car insurance policy.
