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The Importance of Underinsured Motorist Coverage

Car Accident Lawyer

Despite the many advantages to having car insurance, it is not a requirement in all 50 states. Even in regions where insurance is a requirement, not everyone has it or can afford it, leaving accident victims potentially at a loss if they sustain damages or injuries during a collision with uninsured or underinsured motorists. Thankfully, most insurance companies offer additional coverage to help potential accident victims through underinsured motorists policies.

The add-on policies will help cover damages up to a specified policy amount, meaning a victim will not need to pay for property or injury rehabilitation out of pocket. However, even with additional coverage, it is possible victims will be left with expenses exceeding policy limits.

How to Handle Policy Limits to Get Adequate Compensation

Unfortunately, there are not many options for the victim of a car accident, especially when the at-fault party does not have insurance. Once a victim reaches policy limits, they will need to pay for the additional expenses with their savings or make payment arrangements with the businesses and medical facilities they owe. 

You can choose to sue the at-fault driver for compensation and recovery, but you are likely only adding to your costs depending on their financial situation. Most people without auto insurance cannot afford it, meaning they also cannot afford a lawsuit. Regardless of the verdict or any settlement agreement, the at-fault party will probably not be able to make good on the arrangement.

Advantages of Underinsured and Uninsured Motorists Coverage

While you might not cover all damages with an underinsured or uninsured motorist policy, you can pay for a significant portion. The coverage helps you avoid long-term debt obligations and can help you return to normalcy sooner by paying for property damage and rehabilitation for injuries.

In many ways, these specialized addendums to a standard auto insurance policy allow for a speedier financial recovery than a trial. When you can use your insurance to cover expenses, you only need to wade through the claims process, which can take weeks or a few months. A trial can last significantly longer, especially depending on the circumstances surrounding the crash. You will need to work with investigators and expert witnesses, and you would do all of this with a limited expectation of total financial recovery.

Instead of rushing into a lawsuit with an uninsured or underinsured motorist, contact a car accident lawyer, like Ward & Ward Law Firm to discuss issues related to your claim. Working together, you can figure out if a lawsuit is the best course.