Many individuals believe that if they are involved in an automobile accident with an uninsured or underinsured motorist, they will have to pay for all personal injury and property damages out of their own pockets. They are unaware that in many cases, their own automobile insurance may be able to help them recover financially.
Many automobile insurance policies contain a clause known as an “Uninsured / Underinsured Motorist” clause. If this clause is included in a policy, a policy holder will pay a certain premium each month for uninsured / underinsured motorist coverage. If they are involved in an accident with a motorist who does not have adequate money or insurance to cover the cost of the collision, the insured motorist’s insurance company will pay the difference between the total cost of damage and the amount that the uninsured / underinsured motorist is able to pay out of pocket.
Some states, such as Illinois, Maryland, and New York, require that all automobile insurance policies include some form of uninsured / underinsured motorist coverage.
How Will My Insurance Company Reimburse Me?
Following an accident, many insurance companies will require that you sure the other driver for liability in the accident before they will pay you for your damages.
Once a court designates the other driver as liable, and they pay whatever they are able to, your insurance company will pay you for the rest of your damages (up to an amount predetermined by your insurance policy’s coverage).
Should You Get Uninsured / Underinsured Motorist Coverage?
Most experts agree that having this type of coverage is well worth the additional money. If you have automobile insurance but not health insurance, then this coverage is especially important, as medical bills resulting from automobile accidents can be very expensive.
Looking at statistics can help you make a decision about purchasing uninsured / underinsured motorist coverage. On average, there are around 6 million car accidents each year in the United States. It is difficult to know the exact number of motorists on the road with insufficient insurance (as they are only discovered if they are in an accident), but studies estimate that approximately 14% of all drivers have inadequate insurance, or no insurance at all.
While it is certainly possible that you will never experience a collision with an uninsured or underinsured motorist, having coverage in your own automobile insurance policy can be a valuable preventative tool to ensure that you are able to recover financially from an automobile accident-regardless of the other driver’s financial situation.
If you would like more information on uninsured / underinsured motorist coverage, contact the car accident lawyers of Terry & Slane, PLLC today.
