The Role of Underinsured Motorist Coverage in Car Accident Claims

Ella McCain

Car Accident Claims

Auto insurance is something all motorists must have. They offer some relief for those who are involved in accidents. The at-fault driver’s insurance often covers property damage and medical expenses.

However, suppose you have been in a car accident and the other party is at fault. In that case, you may file a car accident claim. This claim will help you recover the damages you’ve suffered due to the accident. The at-fault party’s insurance company will cover these damages.

If the at-fault driver does not have auto insurance, your uninsured motorist coverage will pay for your injuries and other associated expenses.

When the at-fault driver’s insurance coverage limit is insufficient to cover your accident-related expenses, your underinsured motorist policy will come into play.

In this article, we shall look at the role of underinsured motorist policies with relevant examples.

Why is Underinsured Motorist Coverage Important?

Underinsured motorist coverage tries to act as a bridge and fill the gap when the at-fault party’s insurance coverage is insufficient to match the dollar value of your losses after a car accident.

Let’s take an example where you are in a car accident and you lose $30,000 due to injuries and other expenses. Here, the at-fault party can claim as underinsured if the maximum limit of their liability insurance is only $20,000. You would have to file an underinsured motorist claim on your own auto coverage in this circumstance to obtain the missing $10,000.

Determining whether the at-fault driver is underinsured for your injury claim actually takes time. Figuring out the coverage limit of the at-fault party’s policy is not a big deal.

However, it takes longer to put a value on the injuries and damage you incurred during the accident and how severe they are. Apart from the above factors, you may also need to take into consideration the following questions:

  • What would be the length of your medical treatment?
  • How many days of work would you possibly miss?
  • How much has the accident impacted your life?

For example, the at-fault party carries a minimum insurance coverage of $20,000, and the injuries are severe. In this case, you can file an underinsured motorist claim quickly since you are sure the bills will exceed the limit. However, if the at-fault party has a maximum liability coverage of $100,000, it could take several months for you to decide whether or not to file an underinsured motorist claim.

Car Accident Claims

Negotiation for Fair Compensation

It is usually easier to handle your auto insurance company when filing an accident claim than a third-party insurance company. But that does not mean that your auto insurance company would happily meet the claim limit of your underinsured motorist coverage. This mainly happens when there are many questions about the nature and severity of the injuries incurred during the accident.

This is where a car accident attorney comes into the picture. With their vast experience and network, they will be able to negotiate the situation smoothly and get you the compensation you deserve.