Car accident victims can face crushing financial burdens if they don’t have uninsured motorist coverage or if it isn’t enough. Just suppose you somehow are involved in an accident, but you are not at fault.
Typically, the victim files a claim with the car insurance company details of the driver at fault. Here you will get the funds to repair your car, recoup compensation for medical expenses or lost salary, and you have to pay nothing out of your pocket. However, what happens if the at-fault driver has an inadequate policy, or even no policy at all?
What Is Underinsurance Motorist Insurance?
Underinsurance is the insurance that you can collect from your own policy if or when the insurance of the defendant is exhausted and you are still left with hefty car or medical bills.
The meaning of the term underinsurance is a bit different in every state. Generally, the at-fault driver doesn’t have adequate insurance to cover the damages they caused to the victim in an accident.
For example, if an underinsured driver faces liability insurance after an accident, they will either possess insufficient liability limits to fully cover your bills or their liability limit will be less or equal to the underinsured motorist coverage limit.
Uninsured motorist insurance is an essential benefit to ensure you can meet your losses or expenses when you suffer from an accident by an underinsured driver. In a few states, uninsured and underinsured motorist coverages are offered together as a single auto policy.
Importance of Having Underinsurance on your Motor Vehicle
It is essential to have underinsurance coverage on your vehicle. This affordable added coverage ensures that you can recoup the losses in case of a serious accident.
What will happen if the driver who caused the vehicle collision doesn’t have insurance coverage, or it doesn’t cover your losses?
Generally, the insurance that offers minimum liability does not always provide proper coverage after a car accident. The underinsured and uninsured motorist coverage helps you secure your savings if you, unfortunately, suffer an accident.
This insurance will also help you in the unfortunate instance that the at-fault driver leaves the scene without providing their insurance information.
What will Happen if you do not have Underinsured Motorist Coverage?
Each state has specific regulations and minimum coverages that all car owners must meet with their car insurance policies. The general state minimum amount differs, but in a few states, the amount is as low as $15,000.
This implies that if you don’t possess underinsurance coverage on your car, then the total amount you can collect is capped at the at-fault driver’s liability insurance low value – despite how gravely you get injured. You can imagine that these low minimums may be woefully inadequate for the cost of serious injuries and significant car damage.
These low minimum requirements also affect the amount you can qualify for in lawsuit funding. The lawsuit funding companies usually help you get 10 to 15 percent advance funds of the total policy amount that you can collect.
No wonder it is crucial to possess underinsurance coverage on your motor vehicle.
Conclusion
Investing in uninsured and underinsured insurance is a small investment for a potentially large and much-needed benefit. It helps drivers when the at-fault party’s liability insurance doesn’t cover your losses. It helps in situations where at-fault drivers have no insurance at all.
Direct Legal Funding is here to help you understand your liability options. We can assist you with everything from settlement loans, lawsuit loans, and lawsuit cash advances. We provide excellent customer service and have grown our business on referrals.
Contact us at 866-941-5588 today for all lawsuit settlement assistance!