Uninsured and Underinsured Car Accident Claims

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In a perfect world, when you get into an accident, the negligent party would be able to shoulder the damages you incurred, whether it is merely property damage or if you got hurt or injured. Reality however, paints a completely different picture. Although auto insurance is often mandated by the state, not everyone is considerate and responsible enough to actually get liability insurance.

State Auto Insurance Requirements

Take for example, the State of California has a compulsory financial responsibility law which provides financial responsibility for any damage or injury caused by a traffic accident, regardless of fault.  Meaning, if you got hurt in a car crash by a negligent driver, you are compensated under this insurance arrangement. But it doesn’t always work that way and many drivers still try to get away without any insurance and often, their victims suffer the consequences of their negligence and irresponsibility. The Insurance Research Council has estimated that the number of uninsured drivers can reach up to 25% in some states.

Uninsured Motorist Insurance Protects Your Injury and Damage Claim

Now this is where Uninsured or Underinsured motorists claims come in. If you have had the misfortune of being hit by a driver with no insurance, this will protect and support your expenses if the other driver in the accident is not insured. Automobile insurance companies often provide or offer an uninsured motorist Clause. This allows policy holders to recover damages for any injury they receive from an uninsured, negligent driver from their insurance companies.

In case of an accident with an uninsured driver, the insurance company pays the difference between what the uninsured driver can pay and what the injured driver is entitled to. All drivers and motorists interested to avail of such protection would just have to pay a premium to the insurance company to include this clause.

Types of UIM Insurance Coverage

There are three types of uninsured and underinsured insurance. Depending on how much drivers want the security of having their insurance companies cover damages in case of an accident, consider the following:

Underinsured Motorist Protection

This pays for any damages that are over and above the amount of coverage carried by the at-fault driver. The amount paid is figured by subtracting the amount paid by the other driver’s insurance.

Uninsured Motorist Property Damage Insurance

Property damaged by uninsured motorist is unfortunate, but there is an insurance to protect against this. The insurance is generally for people who do not have collision damage. It protects their car against uninsured drivers and the addition to the premium isn’t that much expensive. This does not cover the insured if he is hit by a hit-and-run driver.

Uninsured Motorist Bodily Injury Protection

The coverage extends to the insured policy holder and any passengers in his car, if they sustain bodily injury. This coverage is all encompassing; it will pay for the insured if he was hit while crossing the street and it will also pay for lost wages. This type of insurance also protects the insured and the insured’s family members while traveling in other vehicles.

Insurance, particularly, uninsured/underinsured motorist claims is important for any person who often goes on the road. Life is a constant risk and far from perfect, having these would at least give policy holders a semblance of security in their lives.