Underinsured Motorist Coverage: Importance and Claims

Drivers need to have auto insurance coverage to be able to drive. Insurance policies give you protection if you are in an accident. The at-fault driver’s insurance generally pays for medical bills and property damage. However, some drivers are on the road without car insurance. You may need uninsured motorist coverage to pay for an accident if they don’t have insurance.

Car insurance laws can vary by state. If you were in an accident with an uninsured driver, a local personal injury lawyer can give you legal advice. Contact an experienced auto accident attorney to find out about your legal options.

What Is Underinsured Motorist (UM) Coverage?

There are different types of car insurance policies, including liability coverage, comprehensive collision, and uninsured/underinsured motorist coverage (UM/UIM). Liability coverage is for when you are at fault for an accident, so you don’t have to pay for all the damages directly. Comprehensive covers damages caused by theft, vandalism, or fire.

Most states require liability coverage for bodily injury liability and property damage. Comprehensive coverage is generally optional. About half of all states require uninsured or underinsured motorist insurance, which is optional in other states. Uninsured motorist insurance is for a driver who doesn’t have their own policy. Underinsured motorist is for damages that go beyond the at-fault driver’s policy limits.

What Are the Benefits of UM Coverage?

With liability insurance, the at-fault driver’s insurance company has to pay for your damages. If the driver doesn’t have insurance, they are personally liable for damages. However, you won’t get enough to pay for your losses if the driver has no money or assets. UM/UIM coverage will pay for your damages if the other driver doesn’t have the money or doesn’t have enough coverage. It also typically covers hit-and-run accidents where the at-fault driver is unidentified.

A car accident can be expensive. Even a minor fender bender can cost you thousands in car repair expenses. If you are injured, you may also have medical expenses and lost wages. A serious injury accident can cost hundreds of thousands of dollars. This may be much higher than the state minimum motorist bodily injury coverage limits.

How Much UM Coverage Should I Have?

Your liability limits may depend on your individual needs and state laws. If your state requires UM/UIM coverage, you need at least the minimum coverage amount. However, the minimums may not be enough to cover you in a serious injury accident. Talk to your attorney or auto insurance adjuster if you have questions about the coverage you need for an underinsured motorist claim.

Does Personal Injury Protection Cover Uninsured Drivers?

About a dozen states have no-fault insurance coverage. This is personal injury protection (PIP) coverage. PIP insurance will cover the accident no matter who is at fault. If you caused the accident or another driver caused the accident, your own insurance should cover the damages. This also applies if an uninsured driver caused the accident.

How Do I File a UM Claim?

After a car accident, you will generally exchange car insurance information with anyone else involved. Most drivers must also report any accident to their own insurance company. Your insurance company will typically handle your claim. Your insurance company can usually determine if the other driver does not have enough automobile insurance to pay for your damages.

You can file a claim against your uninsured motorist coverage if you are involved in a hit-and-run accident. This should cover your bodily injury and property damage losses, subject to any deductible and coverage limits. It is best to collect as much evidence as possible to support your claim.

What Should I Do if My UM Claim Is Denied?

Generally, the insurance agent will provide a reason for denying your claim. They may claim you did not file in time or that your insurance policy or other restrictions do not cover the accident. Sometimes, you may need to provide additional information as part of the insurance claim.

If your car insurance company denies your claim, you may need a lawyer. Your attorney can negotiate with your insurance company and the other driver.

Do You Need a Car Accident Lawyer?

Insurance companies don’t like to pay out any more than they have to, even if your auto insurance policy covers uninsured accidents. The insurance company may try to limit your injury or property damage coverage. A car accident lawyer can negotiate with the insurance company to ensure you get compensation for all your losses.

Your attorney can also file a personal injury claim to get compensation for property damage and medical payments. After an injury accident with an uninsured driver, speak with an experienced car accident attorney for help.