Auto liability insurance coverage is a financial guarantee by the insurance company to protect your assets and life during a car accident.
This prevalent type of insurance, like health insurance, protcts policyholders up to the relevant policy limits.
Insured cars pay their policy limits but have to pay a premium.
Talk to Ehline Law to Help with Uninsured Motorist Insurance
Uninsured motorist coverage is much different than auto liability insurance. It is the type of insurance you need to have to protect yourself from uninsured motorists. However, adding additional coverage to your insurance increases premiums, giving the insured a thought on whether or not they should waive the uninsured motorist coverage.
What Is Underinsured Motorist Coverage or Uninsured Motorist Coverage?
Both these insurance terminologies are the same but act differently than car insurance or health insurance. Underinsured motorist coverage protects policyholders from uninsured motorist property damage or uninsured motorist bodily injury.
But what does it translate to in simple words?
The other party’s insurance will cover your damages if you’re in a car accident and have an auto insurance policy. However, what do you do if the other party does not have insurance or if they have policy limits lower than the damages?
Uninsured
Uninsured motorist coverage pays for the damages by the other driver if they do not have auto insurance.
If you’re in a car accident with a driver without insurance, you would have to pay for medical bills and repair costs if it’s a hit-and-run accident.
Underinsured
The same case applies to underinsured drivers. These drivers have insurance but do not have enough insurance to cover the damages to you. In such cases, underinsured drivers have insurance but carry minimum insurance limits.
An insurance company takes on the financial responsibility of uninsured and underinsured motorists, whether medical or repair costs. However, you need to have the right type of coverage.
There are different types, whether medical or underinsured/uninsured insurance, and it is best to know what you’re getting for each type of coverage.
What Does the Liability Coverage Include?
Liability insurance means liability coverage for the following:
- Uninsured motorist bodily injury: If an at-fault driver has an accident with you, this type of bodily injury coverage covers your medical bills, lost wages, and even funeral expenses. The uninsured motorist coverage pays for damages if you walk as a pedestrian or ride a bike and get hit by a car.
- Underinsured motorist bodily injury: Sometimes, you may come across drivers with lower liability limits than the damages from a car accident. This coverage protects you from any losses if the damage exceeds the underinsured driver’s liability limits.
- Uninsured motorist property damage: Protects your car or any other property in a car accident by uninsured drivers or drivers without car insurance.
- Underinsured motorist property damage: Protects your car or any other property in a car accident by underinsured drivers who don’t have liability limits more than the damage done.
You can have car insurance with different types of coverage. Having multiple coverages on your car insurance policy can help you against staggering medical bills, ridiculous repair costs, and more. A combination of comprehensive insurance and collision coverage can protect you from major types of damages in a car accident.
Some states also require uninsured motorist coverage, underinsured motorist coverage, and liability insurance.
Is Underinsured Motorist Coverage Mandatory in California?
Many states in America require car insurance to legally drive a vehicle. However, some states do not require car insurance; the same goes for uninsured motorist coverage to drive a vehicle legally. However, under the California insurance code, you must have car insurance to drive your vehicle around the state legally. However, there is no mandatory requirement for having an underinsured motorist to drive your vehicle around the state legally bit tricky.
For example, suppose you’re in Virginia or New Hampshire. In that case, you do not need car insurance to drive around, but if you’re going to get car insurance, then the policy must have both types of coverage; the underinsured and the uninsured.
It is best to go over your state laws and comply with all rules to have a chance at excellent compensation if you are ever in an accident.
How Much Does Underinsured Motorist Insurance Cost?
Usually, this type of insurance or coverage is available for your regular auto insurance at a relatively low cost.
However, in states with more uninsured drivers on the road, this affects the premium, pushing the cost upwards.
It’s best to have underinsured coverage liability limits to your auto insurance. However, the cost of this coverage can increase if you push your coverage limits according to the assets you want to protect under your policy.
Adding comprehensive coverage, collision insurance, or property damage coverage to your underinsured/insured motorist insurance will also drive the cost up.
Car repairs and medical expenses are getting expensive by the day and to bear all these costs yourself is simply unfair and a financial burden to you and your family members.
It is best to contact a lawyer if you’re in an accident with an underinsured/uninsured driver. Insurance companies like to delay the contacts, and facing delays in such a crisis can further put a financial dent. Don’t let this happen to you. Get a legal firm that can help you.
Contain an Attorney Today to Expedite Claims
Ehline Law has given legal services thousands of clients and has vast experience dealing with the insurance industry.
We have retrieved more than $150 million in compensation from insurance companies, whether a health insurance company, auto insurance, or any other type of insurance.
Ehline Law Can Help
Our attorneys will help you file claims and ensure that the insurance company does not delay the claims process so that you can make repairs and accident claims.
For more information, visit our website or send us an email, and an attorney will get back to you as soon as possible. Contact us at (213) 596-9642 or schedule a visit; email us, and schedule a free consultation.
Michael Ehline
Michael Ehline is an inactive U.S. Marine and world famous legal historian. Michael helped draft the Cruise Ship Safety Act and has won some of the largest motorcycle accident settlements in U.S. History. Together with his legal team, Michael and the Ehline Law Firm collect damages on behalf of clients. We pride ourselves in being available to answer your most pressing and difficult questions 24/7. We are proud sponsors of the Paul Ehline Memorial Motorcycle Ride, and a a Service Disabled Veteran Operated Business. (SDVOB.) We are ready to fight.
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