How Does Uninsured / Underinsured Motorist Coverage Work?
Any kind of motor vehicle accident can really take its toll on your bank account. To restore your life to what it was prior to a collision, you will likely have to spend money on:
- Repairs to your vehicle
- Medical bills you incurred while treating any injuries caused by the accident
- Legal fees if you have to take the other driver to court in order to assign blame for the accident
- Insurance fees / deductibles
Most people are not in a position to cover all of these costs out of pocket, and rely on their insurance policy, or the insurance of the at-fault driver, to cover the many bills that stack up.
If you are in an accident with an uninsured or underinsured driver, your first inclination may be to panic. Is it possible to really cover all of these expenses without the other driver’s insurance assistance? Such worrying may be premature, however, as many people are unaware that they have uninsured / underinsured motorist coverage as part of their own insurance policies.
How Does It Work?
If you have this type of coverage, your own insurance policy will help you cover the above costs following an accident if the other driver is at fault and does not have sufficient insurance. To receive this money, the first thing you will have to do is take the other driver to court in order to legally assign blame for the accident.
Once the other driver is shown to be at fault for the accident, he or she will be required to pay whatever he or she can, either from insurance money or savings, to cover the cost of your accident. Once this money has been paid, your own insurance company will make up the difference between money already paid out and the accumulated costs of your accident.
Laws regarding uninsured and underinsured motorist coverage vary widely from state to state, and so it is important to speak with a legal professional to fully understand this complicated arrangement.