Uninsured and Underinsured Coverage: What you need to know

As a driver in the United States, regardless of where you reside, you are required to carry car insurance coverage. That being said, there is nothing stopping somebody from taking to the road without the proper level of insurance (or none at all).

If you are involved in a car accident and it was not your fault, you are likely to take the following first step: file a claim with the at-fault driver’s insurance company. From there, you can get your car repaired and collect for any medical expenses and lost wages. In other words, you don’t have to pay out any money.

But what happens if the driver who hit you does not have insurance? What happens if he or she does not have enough coverage? In some states and in some accidents, minimum liability requirements do not provide enough coverage.

If you have uninsured and underinsured motorist coverage, you don’t have much to worry about. If you don’t have this type of coverage, you will pay out of pocket for damages that are not covered by the other party’s insurance policy.

What’s the Difference?

The coverage name may sound the same, but there is a big difference between uninsured and underinsured coverage.

• Uninsured coverage protects you in the event of an accident with an at-fault driver who does not have liability insurance.
• Underinsured coverage comes into play if you are involved in an accident with an at-fault driver whose liability limits do not cover medical expenses and the entirety of the damage. The at-fault party’s insurance will only pay for damages up to the policy limits. From there, your underinsured coverage will kick in.

Nobody wants to be involved in a car accident. Furthermore, nobody wants to find that the at-fault driver does not have the appropriate level of insurance. Fortunately, you can protect yourself, to a certain extent, by purchasing uninsured and underinsured coverage.

If you are involved in an accident with somebody who does not have any or much insurance coverage, you need a personal injury attorney on your side that can explain your rights and help you recover the money you deserve. Contact us and we will do whatever it takes to answer your questions and relieve your stress.

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Stephanie Thompson, Estate Planning Attorney of Krueger Hernandez & Thompson SC

As the owner of Krueger Hernandez & Thompson SC, it is Stephanie’s mission to address each client’s goals for their estate plan. By identifying their wishes and concerns she can educate, guide, and counsel on the different tools and options that will effectively and efficiently accomplish those goals.

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