Uninsured and Underinsured Motorist Coverage

It is required by state law in most states that you purchase car insurance. If you are found to be driving without auto coverage, you may face having your license revoked, still punitive fees, even possible time in jail. There are, however, some states that do not require insurance by law.

Even if you have purchased the minimum required coverage, it may not be enough in the event of an accident. It is very possible that the damage you cause to your car or to other people and their property may exceed the limits of your liability coverage.

Because of this, uninsured motorist coverage plans are quite popular. The following will discuss the benefits, drawbacks, and nuances of uninsured and underinsured motorist coverage.

In the event that you are in an accident that is caused by an uninsured or underinsured driver, your health insurance policy will cover the hospital and medical expenses. If the person who has caused the accident does have insurance, your health insurance plan will wait until the deductible on the at-fault driver has been exceeded. If you have uninsured or underinsured motorist coverage, your policy will kick in prior to your health insurance. But health insurance will only cover the medical expenses, and not an other losses incurred. If you are forced to miss work, your losses will only be covered to the extent of the at-fault driver's policy, and you will suffer any losses beyond their coverage.

Uninsured and underinsured policies are designed to protect you in the event that you are in an accident and the other driver does not have a policy or limits on the policy high enough to cover your losses. Depending on where you live and which company is providing your insurance, you may be able to buy these policies as additions to your current plan. These plans will cover the costs of bodily injury as well as property damage from the accident. Without this insurance, you will need to rely on civil claims court to recoup your expenses. Of course, typically someone who is uninsured or underinsured do not have the money to afford appropriate coverage, and will not be able to pay you even if you win your case.

Just like with any accident, if you are hit by an uninsured or underinsured driver, you should take down all the information, including whatever insurance details they may have. You should file the claim with your insurance company immediately, even if you are going to need your uninsured or underinsured motorist coverage. The insurer will handle the claim like any other claim, and will investigate the details of the accident and the coverage of the at-fault driver. It is typically best to call the police after an accident and file an official report. This will usually expedite the investigation process and help you receive your compensation sooner, rather than later.

While it may seem annoying to wait while your insurer investigate the claim, it often works to your own benefit. For example, you may discover that the insurance information that the at-fault driver provided was incorrect, or pertaining to an expired policy. The insurance company is not just fact-checking the information your provided, they are researching all aspects of the claim. By having uninsured or underinsured motorist coverage, it can highly expedite the process. As soon as it is clear that the at-fault driver did not have coverage (or adequate coverage) your policy will go into effect. It should be noted, however, that your property damage will generally be covered with more timeliness than your personal injury coverage. Medical compensation simply takes longer in many cases.

There are, however, limits to the protection provided by uninsured and underinsured motorist coverage. If you are the at-fault driver, it is completely negligible what type of coverage the other driver had, even if they had no coverage whatsoever. There are also, sometimes, comparative negligence laws that may pertain to your case. Comparative negligence laws deal with accidents where the responsibility for the accident is not exclusive to the other driver or yourself. These laws will calculate the percentage of the damage or injury that each driver covers. This means that while one driver may recoup his costs from actual liability insurance, another driver may take his percentage from uninsured or underinsured motorist coverage.

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