Getting into a car accident is nothing short of an overwhelming experience. Between assessing damage, exchanging information and possibly dealing with injuries, there’s a lot to manage quickly.
However, that stress can be significantly heightened by the rude shock of the other driver not having car insurance. While drivers are required to carry a minimum level of auto insurance, many people still drive without coverage. So, what happens if you’re the unfortunate victim of such a driver?
What is uninsured and underinsured motorist coverage?
Uninsured motorist (UM) coverage is a form of auto insurance that steps in when you encounter an accident with a motorist who has no insurance at all. On the other hand, underinsured motorist (UIM) coverage steps in when the at-fault motorist has insurance, but their policy limits fall short of covering all the damages. Both types of coverage are designed to help ensure you’re not left financially vulnerable if the other driver can’t pay.
Why some drivers don’t have insurance
There are several reasons why a driver might be uninsured. Some may let their policies lapse due to financial hardship, while others may intentionally avoid purchasing coverage. Unfortunately, when these drivers cause accidents, they typically can’t afford to pay for damages out of pocket, leaving the burden on the victim without proper coverage.
How uninsured motorist coverage helps
If an uninsured driver hits you, your UM policy can step in to cover medical costs for you and your passengers. This coverage acts almost like the other driver’s missing liability insurance. It helps ensure you’re not forced to rely on savings or personal resources to recover from the accident.
What about underinsured drivers?
Underinsured motorist coverage becomes important when the at-fault driver’s liability insurance limits are too low to pay for all your damages. This can be critical in accidents involving severe injuries, where costs can quickly exceed minimum coverage levels.
Actionable steps following a collision with an uninsured driver
If you’re involved in an accident with an uninsured or underinsured driver, report the incident to your insurance company as soon as possible. This will help ensure you receive the reimbursement you qualify for under your policy.
Encountering a collision with an uninsured or underinsured driver can be a financial and emotional strain. However, having the right type of coverage in place and enlisting pertinent legal support can make a world of difference.
