What is Underinsured Motorist Coverage?

car after an auto accident

Underinsured motorist coverage is a type of coverage that you may not think about often, but you will be grateful that you have it if you get into a serious accident. This type of coverage is designed to cover a gap between what another driver’s policy can pay out and the actual bills faced by accident victims. A Middlesex County, NJ car accident attorney can help you fight for compensation from another driver, and then they can answer your questions about making a claim on your own policy.

How Much Underinsured Motorist Coverage Do I Need to Carry?

You are required to carry underinsured motorist coverage, but the mandatory limit is quite low. You can carry just $5,000 in coverage and that is fine by state law. If another driver’s policy pays out to its maximum, then you can submit a claim to your own insurance company and ask for your underinsured motorist coverage to pay out. A lawyer from our firm can help you sue another driver and they can help you communicate with your insurance company.

Can I Add More Underinsured Motorist Coverage to My Policy?

You might want more protection than that though. You should consider the value of your car and the potential costs of medical bills and vehicle repairs. Then you can increase your amount of underinsured motorist coverage in increments of $5,000. You can add enough to match your own liability limits.

Can This Coverage Help Passengers Who Are Injured?

One benefit of underinsured coverage is that it can help passengers who are injured. This coverage can help anyone who was riding in the car with you pay for their medical bills and get on the road to recovery. Even if you and your passengers have health insurance, getting a payout through your own uninsured motorist policy can be beneficial. There’s no worrying about a healthcare plan’s deductible, and you can make sure that everyone with injuries is able to get the treatment that they require.

Do I Need to Sue for Damages?

In most cases, you are going to have to sue for damages before your policy pays out. This is because underinsured motorist coverage is only meant to reimburse you when another driver’s policy cannot. So an at-fault driver’s policy needs to be exhausted before your underinsured coverage can be used.

Some other types of coverage on your own policy, like collision, might kick in though. It’s important to consider your total expenses and what insurance has already paid out when deciding whether or not it is worthwhile to pursue legal action.

Contact Our Law Firm Today

If you are ready to move forward with a personal injury suit against another driver, contact Stathis & Leonardis. We can schedule a consultation and tell you more about how an attorney can be of assistance.

Read Our Latest News & Blogs