Auto liability insurance coverage is a financial guarantee by the insurance company to protect your assets and life during a car accident.
This is a very common type of insurance like health insurance and protects policyholders up to the relevant policy limits.
Insured can increase their policy limits but have to pay a premium on it.
Uninsured motorist coverage is much different than auto liability insurance. It is the type of insurance that you need to have to protect yourself from uninsured motorists. However, adding additional coverage to your insurance will drive premiums up giving the insured a thought on whether or not they should waive the 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?
If you’re in a car accident and have an auto insurance policy, the other party’s insurance will cover your damages.
However, what do you do if the other party does not have insurance or if have policy limits lower than the damages?
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.
The same case applies to underinsured drivers. These are drivers who have insurance but they do not have enough insurance to cover the damages to you. In such cases, underinsured coverage helps you against drivers with minimum insurance limits.
An insurance company takes on the financial responsibility of uninsured and underinsured motorists whether it be medical costs or repair costs. However, you need to have the right type of coverage.
There are different types of coverages you can get for underinsured/uninsured insurances, and it is best to know what you’re getting for each type of coverage.
This type of insurance has 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’re walking as a pedestrian or riding 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. Having this coverage protects you from any losses if the damage is more than the liability limits of the underinsured driver.
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 coverages.
Having multiple coverages on your car insurance policy can help you against staggering medical bills, ridiculous repair costs, and more. With a combination of comprehensive insurance and collision coverage, it can protect you from major types of damages in a car accident.
Some states also require that you have uninsured motorist coverage, underinsured motorist coverage, and liability insurance too.
Many states in America require car insurance to legally drive a vehicle, however, some states do not require car insurance and the same goes for uninsured motorist coverage.
According to the California insurance code, In California, you need to have car insurance to legally drive your vehicle around the state, however there is no mandatory requirement for having underinsured motorist coverage.
With other states, it’s a bit tricky.
For example, if you’re in Virginia or New Hampshire, 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 laws to have a chance at a great compensation if you were to ever be in an accident.
Usually, this type of insurance or coverage is available for your regular auto insurance at a relatively low cost.
However, in states where there are more uninsured drivers on the road then this affects the premium pushing the cost upwards.
It’s best to have underinsured/uninsured coverage liability limits similar 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 by yourself is simply unfair and a financial burden to you and your family members.
It is best to reach out to a lawyer if you’re in an accident with an underinsured/uninsured driver.
Insurance companies like to delay the claims process and facing delays at such a crisis can further put a financial dent. Don’t let this happen to you and get a legal firm who can help you.
Ehline Law has given legal services to over 3,000 clients and has experience dealing with the insurance industry.
We have retrieved more than $150 million in compensation from insurance companies whether it is a health insurance company, auto insurance, or any other type of insurance.
Contact us at (213) 596-9642 or schedule a visit to our office and get a free consultation.
Our attorneys will help you with filing claims and ensure that the insurance company does not delay the claims process so that you can make repair and medical payments.
For more information, visit our website or send us an email and an attorney will get back to you as soon as possible.