In a perfect world, when mishaps occur on the road, we’d like to trust that whatever damages that are incurred will be dealt with in a hassle free fashion through our car insurance policies. But what happens when you the driver who causes the accident is underinsured? This is where underinsured motorists coverage plays a crucial role in recouping your losses. This type of coverage ensures that, regardless of the responsible party’s insurance status, any bodily injury, property damage that you suffer will be covered.
Remember that underinsured motorists coverage is considered a separate entity from your regular car insurance policy, though in certain states, they can be – or is otherwise mandated to be — purchased together. Considering how much security it can provide you, the cost of adding it to your existing policy is relatively cheap and will prove to be worth its weight in gold when misfortune strikes. Medical bills, disfigurement, emotional distress, and lost wages can all be compensated. In the current economic downturn, plenty of people are finding it tough to maintain car insurance premiums and in the case that someone hits you or your car, it is not outside expectation that he or she might not be insured. This situation will leave you, proverbially speaking, up the creek without a paddle. With underinsured motorist policy though, you will be able to get money regardless of whether the uninsured perpetrator has it to give or not.
Be mindful of the fact that if you’re in an accident and try to negotiate a reimbursement deal with the other driver independently, you will not be able to file a claim for UMI. Be cautious and contact your insurance company about the proper way to handle the situation. At the time of collision, take contact information from the other driver and any insurance information they might have, and submit for review to your insurance company. If it turns out that the driver is underinsured, a written statement will be required from him or her to confirm this fact for your insurance company. You’ll likely be compensated for your damages by the other driver’s policy (as much as their policy limits will allow), and then you can make a claim with your own insurance company for whatever the balance might be.
With all the conscientious effort made by a motorist to shop around for a good car insurance plan, it only stands to reason that underinsured motorists coverage should be part of the package. If someone else is not responsible enough to have proper car insurance, then it is contingent upon you to be proactive.
