Underinsured motorist coverage is the important part of your insurance policy that covers property and bodily damage caused by a negligent driver with inadequate insurance coverage. Simply put when a party causes an accident but does not have sufficient insurance to compensate you, your own underinsured coverage can take care of the difference.
The Insurance Information Institute reports that over 13% of motorists have no adequate insurance coverage. A greater amount have low limits that may not compensate you adequately as an injured party. Therefore, underinsured motorist coverage is essential to for accident victims to receive basic compensation for their injury in the event that the at-fault driver does not have adequate coverage.
Why is underinsured motorist coverage necessary?
Individuals may take a lower coverage limits for a number of reasons including the financial costs, or a lack of understanding of appropriate amounts of insurance coverage. While most drivers follow the law and have basic insurance coverage, the minimum coverage requirements in most states are extremely low and are only adequate to cover minor accidents. Personal injury lawyers, like a person injury attorney Milwaukee trusts, have the experience to understand insurance policy and how an accident may be covered by multiple policies of those involved.
What underinsured motorist coverage do I need?
As a personal injury lawyer advises, your coverage for underinsured motorist should be adequate to cover both bodily injury and property damages in the event low insurance coverage from an offending party cannot provide proper restitution.
When to make an underinsured motorist coverage claim
As soon as you are in an accident, depending on the severity, you will want to speak with your insurance carrier and put them on notice that there may be a claim. When an accident happens, you will exchange insurance information with the other driver and may need to call the police for a proper investigation. You may not know the extent of damage caused immediately, and also the amount of liability the other driver’s insurance will cover. The ultimate costs will be determined by the degree of your injury, missed work, and any property damage to your vehicle. A personal injury lawyer can help you understand your policy limits and type of action to take next.
What is the total amount of coverage I can have?
Most insurance companies do not allow you to carry a higher underinsured motorist coverage than your personal liability coverage. If you need more information about the amount of coverage you can take, you can talk to a qualified insurance agent. They are in better position to give you relevant information regarding underinsured motorist coverage and any other vital information particular to your situation.
Thanks to our friends and co-contributors from Hickey & Turim, S.C. for their insight into underinsured motorist coverage.