Understanding Your Auto Insurance Policy: Uninsured Motorist Coverage and Underinsured Motorist Coverage

Posted in Medical Malpractice

Auto insurance coverage can be confusing and complex. Few people take the time to look at your auto insurance policies to determine whether they have the proper coverage. Even less people understand what the various types of coverages mean. Auto insurance policies can be confusing and difficult to understand. I will try to make it easier for you to understand the various types of coverages on a standard auto insurance policy.  

For starters, there are several types of coverages on the standard auto insurance policy. In a prior blog post, I explained bodily injury coverage. Now, I will explain what uninsured motorist coverage and underinsured motorist coverage is.

What happens if you are in a car accident caused by someone who is uninsured?  Who do you make a claim against?  Uninsured motorist coverage on your own auto insurance policy pays for your property damage or bodily injury (or both) if you are in a car accident caused by someone who is uninsured.  So, if you are injured in a car accident that was caused by someone who was uninsured, you can make a claim against your own auto insurance company under the Uninsured Motorist Coverage provision of your auto insurance policy.     

Now what happens if you are injured in a car accident and the driver who caused the accident has insurance but only has a small amount of coverage, and your injuries are worth much more than that amount?  Well, in that instance, you should look to the Underinsured Motorist Coverage on your auto insurance policy.  Underinsured Motorist Coverage pays for your property damage or bodily injury (or both) if you are in a car accident caused by a driver who is insured but who has less coverage than your auto insurance policy’s Underinsured Motorist Coverage.  This may sound confusing, but let’s take a look at a simple example:
 
Jane purchases $100,000 in liability coverage and $100,000 in underinsured motorist coverage. Sam purchases only $15,000 in liability coverage. Sam crashes his car into Jane’s car, causing $25,000 in damages.  Sam’s insurance company pays $15,000 of the damages, while Jane’s insurance company pays the remaining $10,000 from her underinsured motorist coverage.

So, as you can see, Uninsured Motorist Coverage and Underinsured Motorist Coverage provide very important benefits.  Take a look at your auto insurance policy today to make sure you have the proper coverage to protect yourself.  

If you want to discuss your auto insurance policy in detail, feel free to call me in my Marlton, New Jersey office anytime. I’ll sit down with you and go through your entire auto insurance policy free of charge with you. Call today: it is well worth your time!