Uninsured/Underinsured coverage

Ahhhhh…..the uninsured driver. It happens all the time. A driver is Uninsured when he has no liability auto policy. Although it’s against the law, many take chances every day and drive without insurance. It’s not just that it’s illegal; it’s a moral problem where you may have to pay a lawyer and court costs too. Not only will the other person be awarded damages in a court of law for you hurting them, but you are liable for the cost to fix their car, medical expenses, wage loss and any pain and suffering damages. If you don’t have insurance to cover this, you will be expected to pay for the rest of your life if need be. It also negatively affects your credit.

Because the state minimums are so low, many people drive and are underinsured. Example: A pickup truck runs a stop sign and seriously injures one of your occupants. You sue in a court of law due to the loss of your spouse. You are awarded $150,000. The owner of the pickup truck has 20/40/10 liability coverages. You yourself have 250/500/100 uninsured/underinsured coverage. The pickup truck’s insurance will pay $20,000 and the rest is up to the truck driver. But he’s flat broke and cannot pay. You can go against your Uninsured/Underinsured coverage and collect the other $130,000.
$150,000 amount awarded - minus
$ 20,000 amount pickup truck’s insurance paid
$130,000 amount pickup truck’s driver is responsible for – he’s too poor so you put a claim in on
Your own underinsured coverage for $130,000.

IMPORTANT: The insurance company will, in turn, go after the pickup truck driver to recoup their $130,000.

 

We can help protect you. 517-759-7777

Posted 10:34 AM

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