There are some kinds of insurance that are mandatory for those who want to drive on public roads, and then there are other types of insurance that are simply a good investment. Motorists typically need to carry liability coverage. The state requires a combination of property damage liability coverage and bodily injury liability coverage.
When a driver is at fault for a collision, their liability coverage helps reimburse others for their losses including damage to their vehicle, medical expenses and lost wages. For those who are not at fault for a crash, their policy may offer no protection if they only carry what the state requires.
However, those who invest in additional coverage may be able to use their policies to protect them in a broad assortment of situations. Underinsured motorist coverage is a very important form of protection that costs a minimal amount relative to how much peace of mind it may provide drivers.
What does underinsured motorist coverage do?
The people who are not at fault for a crash rely on the people who do cause collisions to provide them with insurance coverage. Unfortunately, state regulations do not require very much insurance given the catastrophic losses a collision could produce.
Drivers typically only need $5,000 in property damage coverage. If a crash only hurts one person, that injured party may only have access to $15,000 in bodily injury liability coverage. The initial trauma care after a crash might cost more than that.
Many drivers carry coverage based on affordability rather than liability protection. Then, when they cause wrecks, the other people who aren’t at fault are left scrambling to cover their losses. For just a little bit more in overall policy costs, drivers can protect themselves from scenarios in which another driver does not have enough insurance to properly compensate them.
Underinsured motorist coverage can help pay for the difference between the actual losses caused by a crash and the coverage available by the driver at fault. Particularly when someone is the main wage earner for their family or has a vehicle in decent condition, baseline insurance coverage may be woefully inadequate for the potential losses related to a collision.
Unfortunately, many people only realize the value of underinsured motorist protection after they get into a crash with someone who has insurance but not enough to properly cover collision expenses. Those involved in crashes caused by underinsured motorists sometimes need to pursue personal injury lawsuits. Litigation seeking to hold a driver or possibly a third party accountable can be an option for those harmed by drivers with mediocre insurance coverage.