Car Insurance

Clearing up the Underinsured/Uninsured Confusion

Posted by on Oct 26, 2013 in Car Accidents, Car Insurance

There are lot of misconceptions and misunderstandings when it comes to underinsured and uninsured coverage. Because of such confusion, many people opt to not have underinsured or uninsured coverage, which can put them in a disadvantage when they encounter an accident with an uninsured driver.

Uninsured coverage (UC) is a policy that pays for you and the other passengers’ medical expenses after an accident with an uninsured driver, while underinsured coverage (UIC) comes in when the driver at fault does not have enough to cover for all the expenses. There are instances where underinsured coverage can also be used during a hit-and-run incident. It may seem trivial, but having an uninsured and underinsured coverage can serve as a lifesaver in dire situations.

Among the many misconceptions of UC and UIC is the thought that they are not necessary because victims can file a claim or lawsuit against the reckless driver. Although it is possible, it can be hard to acquire compensation from someone who does not have enough funds to pay for damages, and going to court can only cost you more money.

It should also be noted that UC and UIC does not cover for car repairs and damages: they are only applicable for medical bills. It is also different from health insurance: UC and UIC maximize the payment for the medical bills without any deductibles, and it covers for lost wages if you are unable to go back to work because of injuries. However, you can only use UC or UIC if the accident was caused by another person, and not because of your own negligence. Nevertheless, it is still advantageous, since a significant percent of motorists in the United States does not have car insurance.

It can be expensive to cover the repair cost and medical bills from your own pocket, especially if the accident was caused by another person’s recklessness on the road. Greenfield car accident lawyers claim that having underinsured or uninsured coverage not only protects you from paying undue medical bills, it can also save other people you are traveling with as well. Avoid further stress after an accident by having a strong car insurance policy.

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