What is Uninsured Motorist Coverage?
Uninsured motorist coverage is to help pay for medical bills that may occur or property damage expenses in the case that the at-fault party in the incident does not have any auto liability insurance. If you find yourself in this situation, you may choose to sue the driver who was at-fault. They may be independently wealthy and can write a check to cover the bills or expenses. This is unlikely, since most people who choose not to carry liability insurance are rarely sitting on a wealth of money.
What is Underinsured Motorist Coverage? …show more content…
Basically, underinsured coverage was designed to help fill the gap between the bills and expenses following an accident and the insurance coverage limits that the at-fault driver’s policy provides. Lets say you are in an accident and you incur $25,000 in medical bills and $10,000 in property damage. Now, lets say the driver who is at-fault only carries liability insurance with a limit of $10,000, therefore, they are underinsured. This is a situation where you would need to make an underinsured motorist claim on your auto policy. You should make a claim immediately when you realize the other driver is