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Understanding Underinsured Motorist Insurance

Car Accident Lawyer

In a perfect world, every driver would carry sufficient insurance to cover the costs of an accident. Unfortunately, we don’t live in a perfect world, and accidents involving underinsured or uninsured motorists are all too common. That’s where underinsured motorist insurance comes into play, serving as a vital safety net for responsible drivers. Learn more about insurance from a car accident lawyer with our friends at The Law Offices Of Andrew Lynch:

What is Underinsured Motorist Insurance?

Underinsured motorist insurance, often abbreviated as UIM, is an optional coverage that you can add to your auto insurance policy. It provides protection in the event you are involved in an accident with a driver who has inadequate or no insurance to cover the damages they’ve caused.

Why Do You Need It?

  1. Protecting Your Finances: When you’re in a collision with an underinsured motorist, it’s likely that their insurance won’t be sufficient to cover your medical bills and property damage. UIM can step in to cover the gap, preventing you from being left with substantial out-of-pocket expenses.
  2. Peace of Mind: Knowing you have UIM coverage can provide peace of mind while driving. It ensures that even if you encounter a negligent driver with minimal insurance, you won’t be financially burdened by their actions.
  3. Legal Requirements: Some states require drivers to carry UIM coverage, while others make it optional. It’s essential to familiarize yourself with your state’s regulations to ensure you’re adequately protected.

How Does It Work?

When an accident occurs with an underinsured motorist, your UIM coverage will kick in after the at-fault driver’s insurance has been exhausted. For example, if the at-fault driver’s policy only covers $25,000 of damages, but your medical bills and vehicle repairs total $40,000, your UIM coverage can cover the remaining $15,000.

Types of Underinsured Motorist Coverage:

  1. Underinsured Bodily Injury Coverage: This covers medical expenses, pain and suffering, and lost wages resulting from injuries sustained in an accident with an underinsured driver.
  2. Underinsured Property Damage Coverage: This covers the cost of repairing or replacing your vehicle when it’s damaged by an underinsured driver.

Cost of Underinsured Motorist Insurance:

The cost of UIM coverage varies depending on factors such as your location, the limits you choose, and your driving history. While it may increase your premium slightly, the peace of mind and protection it offers are well worth the investment.

Underinsured motorist insurance is an invaluable safety net that every responsible driver should consider. It safeguards your finances and provides peace of mind on the road. While it may seem like an additional expense, it’s a small price to pay for the protection it offers in the event of an accident with an underinsured or uninsured driver. Before you hit the road, take the time to review your auto insurance policy and ensure you have adequate UIM coverage in place. It’s a decision that can make a world of difference when you need it most. If you or someone you love is involved in a car accident, contact a lawyer near you for help immediately.