Auto accidents are financially and emotionally draining, particularly when the responsible driver is underinsured or uninsured. When this occurs, uninsured and underinsured motorist (UM/UIM) coverage can help protect your finances. It is important for anyone who finds himself or herself dealing with the consequences of an accident to understand how this type of coverage operates. The question on every victim’s mind is, “How much can I get from an uninsured motorist claim?” This blog has an answer for that too. Read on.
What is Uninsured and Underinsured Motorist Coverage?
Uninsured motorist (UM) coverage is intended to cover drivers in case they are involved in an accident with an uninsured motorist. Underinsured motorist (UIM) coverage comes into play when the at-fault driver is insured, but the limits of their insurance are not enough to pay for the damages.
Auto insurance is mandatory in most states, yet a large percentage of drivers continue to drive without coverage. The Insurance Research Council estimates that close to 13% of drivers in the U.S. lack insurance, making UM/UIM coverage a valuable addition to any policy.
UM/UIM coverage generally covers:
- Medical bills for injuries incurred in the accident
- Lost income due to time away from work
- Pain and suffering resulting from the accident
- Damage to property, depending on the policy
How Uninsured and Underinsured Motorist Coverage Operates
If a driver who has UM/UIM coverage is involved in an accident that is caused by an uninsured or underinsured motorist, the insurance company of the driver covers damages that the responsible driver is unable to pay.
Every state has varying requirements for UM/UIM coverage. Some states require it and others permit drivers to waive it. Knowing your state’s requirement is crucial in making sure that you have sufficient protection in the event of an accident.
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Calculating Compensation in a Claim
Perhaps one of the most frequent inquiries after an accident such as this is: How much can I receive under an uninsured motorist claim? The amount that you can receive varies under multiple factors, such as:
- The policy limits of your UM/UIM coverage
- The severity of your injuries
- The financial impact of the accident
- The state laws regulating UM/UIM claims
In Illinois, for instance, state law mandates that uninsured motorist coverage equal the bodily injury liability limits of an insured driver’s policy. If a policy is written with a $50,000 per person limit, the most the company will pay on an uninsured motorist claim will be that figure. Other factors like medical expenses and lost wages will decide the ultimate settlement figure.
Steps to Take After an Accident with an Uninsured or Underinsured Driver
If you are in an accident with an uninsured or underinsured driver, taking the right steps can help you secure the compensation you need:
- Call the Police: A police report is essential for documenting the accident and proving fault.
- Gather Evidence: Take photos of the accident scene, vehicle damage, and any visible injuries.
- Swap Details: Get the other driver’s details and insurance policy, if present.
- Get Medical Attention: Even when you don’t feel hurt, medical assessments may reveal concealed injuries.
- Inform Your Insurer: Notify your insurer promptly to initiate the claims process.
- Seek Advice from a Lawyer: Advice from a lawyer can prove beneficial in getting a better settlement, particularly if your insurer contests your claim.
Why Uninsured and Underinsured Motorist Coverage Matters
UM/UIM coverage is an economic safety net for motorists. Without UM/UIM coverage, victims of accidents might not be able to receive payment for medical bills, lost income, and other injuries. When the at-fault motorist cannot afford to pay, UM/UIM coverage protects the policyholder from going financially empty-handed.
Another key feature of UM/UIM coverage is that it will pay for hit-and-run accidents. In case a driver hits someone and runs away, cannot be traced, and therefore is not insured, UM coverage comes to the rescue to pay the damages.
Final Thoughts
Car accidents are often unpredictable, and having to contend with an uninsured or underinsured motorist can make a bad situation worse. Having the right UM/UIM coverage can provide peace of mind and protection for your financial well-being. If you have questions about your policy limits or need assistance with filing a claim, seeking the advice of an insurance professional or attorney can clarify your choices.
For additional information on insurance coverage and legal rights following an accident, visit sites like the National Highway Traffic Safety Administration (NHTSA) and the Insurance Information Institute.