A car accident is alarming, especially if you suffered damage. If you are injured, the inconvenience may be outweighed by pain, suffering and loss of income. If the at-fault driver does not have enough insurance coverage to pay for your damages, you may have to shell out money for an accident that was not your fault. Take a look at why underinsured motorist coverage may be beneficial to add to your policy.
Is Underinsured the Same as Uninsured?
Insurance terms may be confusing, especially when you aren’t familiar with them. There are two types of coverage options that function similarly but kick in at different times. Uninsured Motorist coverage, or UM, triggers when the at-fault driver does not have any car insurance. While most states require drivers to carry some minimum auto insurance policy, but this does not mean everyone follows the law. If you get hit by someone with no insurance, and you don’t have UM, you may be on the hook for all the damage.
Underinsured Motorist coverage, UIM, triggers when the at-fault driver has some insurance, but the coverage is too low to cover all of your damage and injuries. Some states require drivers to have UM and UIM policies, while others do not. There are also UM and UIM policies that cover just medical care as most basic UM and UIM policies only cover damage to the vehicle. Both of these types of coverage require an additional fee.
What Does Underinsured Motorist Coverage Do for Me?
UIM policies may be beneficial to carry as they can cover the gap between the type of insurance the other driver has and your policy. You may pay monthly for higher policy limits than the other driver, and as such, you would like to access them. When the other driver causes the accident and has policy limits that are the bare minimum, your UIM benefits will kick in and cover the difference between your policy and theirs. It is a good idea to consult your carrier for any state-specific parameters concerning UIM and UM coverage.
Why Is Underinsured Motorist Coverage Important?
When it comes to dealing with an underinsured motorist, you may find yourself frustrated and angry. You carry insurance that would more than pay for your damage, but because the other driver has the bare-bones policy, you wind up coming out of pocket. UIM coverage may wind up saving you some of the stress that goes along with an accident.
After an accident, you may want to check in with a car accident lawyer for guidance. A car accident lawyer in St. Paul, MN can help raise issues and options you may not have thought about to improve your situation.
Thanks to Johnston | Martineau, PLLP for their insight into personal injury claims and uninsured car drivers.