Not many people know about uninsured or underinsured motorist coverage.
Uninsured motorist coverage covers you when you are injured as a result of a driver who did not have insurance, a hit and run driver, or a driver of a stolen car. Uninsured motorist coverage is provided by your own insurance company. The cost of this coverage is usually nominal and should be considered when purchasing auto insurance.
Underinsured motorist coverage allows you to recover from your own insurance company, money to pay for damages incurred from an at-fault driver who does not have enough insurance to cover your damages. Not enough people elect to have this type of coverage, but it is important to consider because these situations are far too common.
With an underinsured policy (which you also get from your own insurance provider) you first are entitled to the full amount of the other person’s coverage and then on top of that, whatever your underinsured policy amount is. This is an insurance policy that makes sure that you are covered no matter what type of insurance the other person who caused the accident may have.
In order to recover your uninsured motorist coverage, you must prove that the other driver was not insured AND that the accident was their fault. To recover your underinsured motorist coverage you must take the full amount of the other person’s coverage that they do have. Then you are entitled to your own policy.