As readers of this blog are aware, we are no stranger to uninsured/underinsured auto insurance claims. Indeed, if readers browse through our articles, they will see several posts on just this topic. However, today’s post will be a deeper dive into uninsured/underinsured auto insurance.
Reminder of the basics
Uninsured or underinsured motorist auto insurance coverage is a special type of insurance and legal claim. It is used when the driver who cause the car accident (the at-fault driver) does not have enough or any auto insurance coverage. It is a rider on one’s own auto insurance policy and ensure that those not at-fault do not have to pay for the at-fault driver’s irresponsibility. Generally, this additional policy protection costs more, but usually, not a significant amount more. And, it can provide not just piece of mind, but also real protection for one’s wallet, should one be unlucky enough to be involved in a car accident with an underinsured or uninsured driver.
How it works
The best way to understand uninsured and underinsured motorist auto insurance coverage is through an example. If one is involved in a car accident through no fault of their own, they will file an insurance claim with the other driver’s car insurance. They will, in turn, pay for the not at-fault driver’s car repairs, lost wages, medical expenses, etc. at no cost to the not at-fault driver. However, problems can occur when the at-fault driver is uninsured and underinsured because our state’s minimum liability insurance requirements are not always enough to cover the full costs of an auto accident, especially if it is serious or one has an above-average valued vehicle. This is where one’s own uninsured and underinsured motorist auto insurance coverage kicks in because it will cover that gap in coverage.
Bodily injury coverage
There are two types of coverage bodily injury (UMBI/UIMBI) and property damage coverage (UMPD/UIMPD). UMBI/UIMBI covers the not at-fault driver’s (and any of their passengers) pain and suffering, lost wages and medical expenses. Indeed, depending on one’s own policy, their UMBI/UIMBI coverage may be much higher than the at-fault driver’s Med Pay or personal injury protection. This can help cover the gaps for medical care.
Property damage coverage
And, UMPD/UIMPD covers the property damage, like one’s car. This can be especially important where one’s car is totaled or is a more expensive vehicle. As our Austin, Texas, readers can see, uninsured/underinsured auto insurance claims can be complicated, but this type of coverage is important. Though, just like with any insurance claim, it is wise to contact an attorney to ensure that one gets what they are entitled.