After The Accident: Uninsured or Underinsured Liabilities
The average American with car insurance believes that after an accident their car insurance will take care of the repairs and medical expenses.
Generally this is true but it does not take into account what happens if the other driver is uninsured or under-insured.
The uninsured motorist (UM) is self-explanatory; It is a situation where a driver of an automobile is not carrying property damage or personal injury liability insurance.
In cases involving a hit and run accident, the driver leaving the scene is almost always considered as an uninsured motorist.
The under-insured motorist (UNDM) is a little different.
A driver who has caused the damage or injury may have insurance, but it has coverage only to meets the legal state minimum, but their payment limits are insufficient to cover the damages inflicted.
For a driver to be protected from either type of driver mentioned above, they must have coverage specific to the UM or UNDM.
In fact, if you are hit by an UM or UNDM, unless you have insurance specifically covering such an instance, there is a chance you may not be able to recover damages at all.
For example, California requires that insurance companies offer UM or UNDM coverage with every policy sold.
UM/UNDM coverage provides liability insurance when the at-fault party does not have the state required minimum or their minimum liability coverage is insufficient to cover injuries.
However, in California the policyholder has the right to decline UM/UNDM coverage.
If you do have UM/UNDM coverage, the issue becomes how much coverage you have and how much the at-fault party carries.
For example, you have injuries of $100,000 and you have $30,000 UM/UNDM coverage and the other driver has $30,000 of liability coverage.
In some states, you will only be able to recover $30,000 because that state will only use your coverage if there is a difference between your coverage and that of the other driver.
For example, with the same amount of injuries, you have $60,000 UM/UNDM coverage and the at-fault driver has $30,000 of coverage.
In that case the at-fault driver is responsible for the full amount of their coverage and your insurance must pay out $30,000 to make up the difference.
In states with this type of system, you will only recover up to the amount of coverage you carry.
In other states, you may be able to recover the sum of your coverage plus that of the at-fault driver.
For example, if you have $100,000 in injuries, you have $50,000 of UM/UNDM coverage and the at-fault driver has $30,000 of coverage, you will be able to recover $80,000 towards your injuries.
The division of costs between the at-fault driver and your insurance company will be dependent on the state in which you live.
It is recommended that most drivers carry between $100,000 to $150,000 in uninsured or under-insured motorist coverage in order to cover any potential bodily injuries or other damages.
In instances where your insurance company must pay out on that coverage, it is usually better to hire a personal injury attorney.
Generally insurance companies are opposed to paying out, making it necessary to have a n experienced personal injury attorney represent you.
An experienced personal injury attorney will be able to protect your rights, handle the insurance company, and make sure that you receive what you should.
Typically, the amount you recover is going to be higher if you utilize the service of a qualified personal injury lawyer.
Generally this is true but it does not take into account what happens if the other driver is uninsured or under-insured.
The uninsured motorist (UM) is self-explanatory; It is a situation where a driver of an automobile is not carrying property damage or personal injury liability insurance.
In cases involving a hit and run accident, the driver leaving the scene is almost always considered as an uninsured motorist.
The under-insured motorist (UNDM) is a little different.
A driver who has caused the damage or injury may have insurance, but it has coverage only to meets the legal state minimum, but their payment limits are insufficient to cover the damages inflicted.
For a driver to be protected from either type of driver mentioned above, they must have coverage specific to the UM or UNDM.
In fact, if you are hit by an UM or UNDM, unless you have insurance specifically covering such an instance, there is a chance you may not be able to recover damages at all.
For example, California requires that insurance companies offer UM or UNDM coverage with every policy sold.
UM/UNDM coverage provides liability insurance when the at-fault party does not have the state required minimum or their minimum liability coverage is insufficient to cover injuries.
However, in California the policyholder has the right to decline UM/UNDM coverage.
If you do have UM/UNDM coverage, the issue becomes how much coverage you have and how much the at-fault party carries.
For example, you have injuries of $100,000 and you have $30,000 UM/UNDM coverage and the other driver has $30,000 of liability coverage.
In some states, you will only be able to recover $30,000 because that state will only use your coverage if there is a difference between your coverage and that of the other driver.
For example, with the same amount of injuries, you have $60,000 UM/UNDM coverage and the at-fault driver has $30,000 of coverage.
In that case the at-fault driver is responsible for the full amount of their coverage and your insurance must pay out $30,000 to make up the difference.
In states with this type of system, you will only recover up to the amount of coverage you carry.
In other states, you may be able to recover the sum of your coverage plus that of the at-fault driver.
For example, if you have $100,000 in injuries, you have $50,000 of UM/UNDM coverage and the at-fault driver has $30,000 of coverage, you will be able to recover $80,000 towards your injuries.
The division of costs between the at-fault driver and your insurance company will be dependent on the state in which you live.
It is recommended that most drivers carry between $100,000 to $150,000 in uninsured or under-insured motorist coverage in order to cover any potential bodily injuries or other damages.
In instances where your insurance company must pay out on that coverage, it is usually better to hire a personal injury attorney.
Generally insurance companies are opposed to paying out, making it necessary to have a n experienced personal injury attorney represent you.
An experienced personal injury attorney will be able to protect your rights, handle the insurance company, and make sure that you receive what you should.
Typically, the amount you recover is going to be higher if you utilize the service of a qualified personal injury lawyer.