If you're in a state where uninsured and underinsured motorist coverage is optional, it might sound like an expense you can skip since the other driver should have insurance. Before you make this decision, you should understand what uninsured and underinsured motorist coverage does and how it can help you after an accident.
What is an Uninsured or Underinsured Motorist?
Uninsured means someone doesn't have insurance. Underinsured means they don't have enough insurance. For example, they might have the legal minimum coverage in a state where the legal minimums don't cover the cost of most cars or the average hospital bill after an accident. Being underinsured is legal. Being uninsured is not, but it still happens.
What Does Uninsured and Underinsured Motorist Coverage Do?
Underinsured and underinsured motorist coverage is buying the insurance the other driver should have been carrying. When someone else causes an accident, their liability insurance would usually pay you. If they don't have liability insurance, you won't get paid. Your own liability coverage only protects other people, not you. If you want to be able to file an insurance claim without relying on the other driver, you need uninsured and underinsured motorist coverage.
Can You Just Sue an Uninsured or Underinsured Motorist?
You can always sue another driver instead of going through insurance, but it probably won't do you any good. Most people that don't buy insurance do so because they can't afford to pay for insurance. If they can't afford to buy insurance, they almost certainly can't afford to fix your car or pay your medical bills. Uninsured and underinsured motorist coverage is the best way to guarantee that you will be paid for covered claims.
How Does an Uninsured or Underinsured Motorist Claim Work?
If you get into an accident, call the police and your insurance company as always. The police will probably cite the other driver for driving without insurance, but this isn't necessary. Your insurance company will use insurance databases to find out if the other driver has insurance and go through their insurance company if they do.
If the other driver has no insurance, your insurance company will pay you up to your limits. If the other driver was underinsured, your insurance company pays you the difference between their limits and the amount of underinsured motorist coverage that you purchased.
To learn more about uninsured and underinsured car insurance, contact a local auto insurance company today.
Share
