Car accidents can lead to physical injuries, emotional trauma, and financial strain. Ideally, the at-fault driver’s insurance would cover your losses. But what happens when the driver responsible for the accident doesn’t have enough insurance—or any at all?
This is where uninsured and underinsured motorists complicate the process of filing a car accident claim.
If you’re facing this situation, working with a car accident lawyer can help you navigate these challenges.
Who Are Uninsured and Underinsured Motorists?
Uninsured motorists are drivers who operate a vehicle without any insurance coverage. Underinsured motorists, on the other hand, have insurance, but their coverage limits are too low to compensate for the damages they cause in an accident. The Insurance Information Institute reports that this is a widesfpread issue, with 12.6% of drivers in the U.S. lacking insurance.
For instance, if an accident leaves you with $50,000 in medical expenses and the at-fault driver’s insurance covers only $20,000, you would still face a $30,000 shortfall. This is where uninsured motorist (UM) and underinsured motorist (UIM) coverage can protect you.
The Impact of Uninsured and Underinsured Motorists on Your Claim
Uninsured and underinsured drivers make it harder to recover compensation after an accident. Without proper insurance coverage from the at-fault driver, you may face significant hurdles in covering your medical bills, lost wages, and property damage.
Challenges with Uninsured Motorists
- Limited Recovery Options: With no insurance to file a claim against, your choices are limited to suing the at-fault driver or relying on your own UM coverage.
- Financial Hardship: Even if you sue, uninsured drivers often lack the financial means to pay a court-ordered settlement.
Issues with Underinsured Motorists
- Coverage Gaps: The at-fault driver’s insurance may only cover a portion of your expenses, leaving you to pay the rest.
- Relying on UIM Coverage: Where you have UIM coverage, it can fill the gap between what the other driver’s insurance pays and your total damages, up to your policy limits.
The Role of Your Insurance Policy
Your insurance policy can help to protect you from the financial risks posed by uninsured and underinsured drivers.
Uninsured Motorist (UM) Coverage
UM coverage helps pay for:
- Medical expenses
- Lost wages
- Pain and suffering
Underinsured Motorist (UIM) Coverage
UIM coverage steps in when the at-fault driver’s insurance isn’t enough to cover your damages. It bridges the gap between their policy limits and your total expenses, up to the limits of your UIM coverage.
Adding UM and UIM coverage to your car insurance policy is a proactive step that can save you from significant financial stress in the future.
Conclusion
Uninsured and underinsured motorists can complicate the process of recovering compensation after a car accident. Their lack of adequate insurance often leaves victims facing financial shortfalls. By securing UM and UIM coverage and seeking advice from a car accident lawyer, you can better protect yourself from these challenges.
Remember, preparation is key to navigating the aftermath of an accident. Review your insurance policy, increase your coverage limits if necessary, and stay informed about your rights to ensure you’re ready for any situation on the road.
