How Uninsured & Underinsured Motorist Coverage Protects You
When a crash happens, uninsured and underinsured motorist coverage (UM/UIM) can be a financial safety net, protecting you from unexpected out-of-pocket costs. A serious car accident can upend your life in seconds, from worrying about medical expenses to lost wages to how long your recovery time will be. Understanding these coverages help you choose a policy that keeps you protected, and in some states, you may be required to have this on your policy.
What is Uninsured & Underinsured Motorist Coverage?
If you’re hit by a driver who has no insurance or their policy limits aren’t enough to cover your damages and injuries, uninsured and underinsured coverage helps cover the gap, so you’re not stuck paying out-of-pocket for these costs. This can also be used in a hit and run when you can’t identify the other driver’s insurance.
Uninsured Motorist Coverage
Uninsured motorist coverage applies when you are hit by a driver who has no auto insurance at all, as well as if you were involved in a hit and run. Despite state laws requiring it, there are many drivers without any coverage. If an uninsured driver causes an accident that injures you or damages your property, UM coverage helps pay for your medical bills, lost wages, and vehicle repairs. It essentially acts as the insurance the other driver should have carried.
Underinsured Motorist Coverage
Underinsured motorist coverage applies when the at-fault driver has insurance, but their policy limits are too low to cover the full extent of your damages. For example, if your medical bills total $75,000, but the other driver’s bodily injury liability limit is only $25,000, their insurance will only pay up to that amount. UMI coverage covers the remaining $50,000, up to your own policy’s limits.
Why Should You Have Uninsured & Underinsured Motorist Coverage?
Even if you’re a good driver, you can’t control everyone else on the road. Counting on other drivers to always have full coverage car insurance isn’t something that you should assume. Here’s why having UM and UMI coverage is important.
There’s a High Number of Uninsured Drivers
There are still many drivers who are on the road uninsured. Getting into an accident with one of them means you could be left with high medical and car repair bills.
Covering for Expensive Medical Costs
Medical costs continue to rise, and even a minor accident can add up to tens of thousands in bills for hospital care, therapy, and more. Without UM and UIM coverage, you could end up paying for these costs out-of-pocket.
Minimum Policy Coverage Isn’t Always Enough
Many states have low minimum liability insurance requirements. Drivers are legally required to have car insurance, but if someone has the minimum coverage, this might not be enough to cover damages and bills for an accident.
How Do State Laws Impact Your Car Insurance Claim?
Each state sets its own minimum coverage requirements, claim procedures, and rules for determining fault, all of which can impact the outcome of your claim. Some states have a no fault system where your insurance covers medical expenses regardless of who caused the accident, while other states use an at fault based system, requiring the at fault driver’s insurance to pay. State regulations also determine the compensation you may receive for injuries, property damage, and lost wages, as well as the deadlines for filing a claim. Understanding your state’s laws helps ensure you have the right coverage, and that your rights are protected. Navigating state laws and insurance regulations can be complex, which is why hiring an experienced attorney for car insurance claims is extremely important. Our attorneys at Postman Law will fight for your rights, advocate for you, guide you through the claims process, and help you get the compensation you deserve.
If you’ve been in a crash in Illinois, learn more about Illinois car accident laws and how Illinois’ comparative fault law affects your settlement. If you’ve been in a crash in Ohio, learn more about Ohio car accident laws and how Ohio comparative fault law affects your settlement.
Does Uninsured Motorist Cover A Hit & Run?
UM coverage often covers you if you were in a hit-and-run. Without UM coverage, you could be stuck paying for damages you didn’t cause. Some states require you to file a police report within a specific timeframe to qualify for UM coverage in hit-and-run cases, so it’s important to know your policy’s requirements. Our attorneys will guide you through the claims process to make sure your rights are protected and state deadlines are met.
Is it Worth it To Hire an Attorney For a Car Accident?
While everyone hopes to never get in a car accident, it’s never a guarantee this won’t happen. Hiring a car accident attorney after a crash will ensure your rights are protected and that you get the compensation you deserve. Insurance companies try to minimize payouts, and navigating the claims process on your own can be overwhelming, especially while dealing with medical bills, vehicle repairs, and recovery. Postman Law’s car accident attorneys will handle the paperwork, negotiate with insurers, and advocate on your behalf. We have offices in Chicago, Cincinnati, Denver, and Minneapolis, but also handle cases nationwide. Call us at 844-POSTMAN or fill out our online form to get a free consultation today.
Disclaimer: This blog post is for informational purposes only and does not constitute legal advice. For specific guidance regarding your situation, consult a licensed attorney.
FAQs
It’s good to have because standard liability insurance only covers damages you cause to others, not damages caused by uninsured or underinsured drivers.
The minimum recommended coverage is $100,000 per person and $300,000 per accident. As a rule of thumb, you should match your bodily injury liability limits.
Yes, each policy has coverage limits and these are the maximum amounts your insurance will pay.
The timeframe for claiming an injury after a car accident depends on state laws and the type of claim like whether it’s a lawsuit or an insurance claim.
A car accident settlement check can take a few weeks or several months to arrive. It all depends on how extensive your claim is and any outstanding bills to pay.
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