What is underinsured motorist coverage?

Underinsured motorist coverage will come to the rescue if your car gets hit by a driver who has no insurance to cover your cost of damages. In another scenario, if the at-fault driver does not have enough insurance to pay you, and if you have underinsured motorist coverage, it would mean that you could collect compensation after all.

Underinsured motorist insurance is a part of your car insurance policy which will cover your expenses ranging from medical bills to automobile repairs or replacement in the event of a car accident.

The conditions for claiming liability to underinsured motorist coverage is –

  • If you are not at fault for causing the accident, most importantly.
  • If the at-fault driver does not have insurance or underinsured motorist insurance.
  • If the at-fault driver does not have enough insurance to cover your costs.

If the at-fault driver cannot pay you because of lack of insurance or low insurance, you will most probably end up paying for the damages and medical bills out of your own pocket. But if you have underinsured motorist insurance, those costs can be covered.

If the other driver has insurance but is not enough for covering the whole cost, you could still agree on a settlement with the adjuster through your car accident lawyer and request your insurance company to cover the rest of the cost.

For example, if the total damage of the accident cost you $20,000, but the other driver was able to pay only $10,000, you could have the rest of the amount through your underinsured motorist insurance. Under your uninsured motorist coverage, you could convince your insurance company to pay you the remaining $10,000 or even the full amount, depending on the company’s limits policy.

How to claim underinsured motorist insurance?

As stated above, the only way you can claim underinsured motorist coverage is if the defendant does not have enough or no insurance to cover your costs. You can settle a claim with your insurance company through your car accident lawyer where you would be able to collect a compensation due to the accident as long as it is within a the company policy limits.

In order to collect your underinsured motorist insurance, you have to present proof to your insurance company saying that the at-fault driver is underinsured. You should also obtain a letter from the at-fault driver’s insurance company claiming the policy limits for that person’s liability coverage. And the last thing is to add a statement saying that you have settled your third-party car insurance claim.

Is underinsured motorist insurance necessary?

Depending on the state that you live in, uninsured motorist coverage may or may not be required. Some states require all drivers to have auto liability insurance coverage while registering their vehicles. But a recent study has revealed that one out of eight drivers do not have auto insurance, so it is a really good idea to talk about underinsured motorist coverage with your insurance company. Underinsured motorist coverage will give you a soft landing at the event of an accident especially when it is not your fault.