In unfortunate situations like car accidents, having insurance coverage is important to protect yourself economically. Two important types of coverage can be helpful if the negligent driver has no insurance or insufficient insurance. In legal terms, underinsured motorist coverage and motorist coverage offer the same kind of advantages, but there are several differences between them.
In order to get fair compensation for your injuries, you should take legal action after a car accident.
In this article, we have discussed the difference between uninsured and underinsured motorist coverage in a car accident claim.
What is Uninsured Motorist Coverage?
Uninsured motorist coverage (UM) is generally created to help victims recover their losses after a car accident. It is applicable only when the drivers do not have any car insurance. With uninsured motorist coverage, you can make a claim with your own insurance firm to obtain compensation for certain losses related to a car accident that covers medical expenses and other fees.
What is Underinsured Motorist Coverage?
Underinsured motorist coverage (UIM) is used when the driver’s liability insurance is insufficient to cover your losses. When the negligent driver’s liability policy limits are inadequate to pay for your medical bills, pain and suffering, and other accident-related expenses, you can file a claim with your insurance firm. Based on the liability policy limits of the negligent driver, the insurance firm will make a settlement.
Key Differences of UIM and UM Coverage
The difference between uninsured motorist coverage and underinsured motorist coverage is an essential thing to understand when you are filing a claim for a car accident. The major advantage of having underinsured and uninsured motorist coverage is that it can give you economic security and peace of mind in case you are involved in a car accident with an underinsured or uninsured driver.
The major difference between uninsured and underinsured motorist coverage is the presence or absence of insurance by the negligent driver. In the case of uninsured motorist coverage, your own insurance firm pays for the damages and injuries caused by the uninsured driver. You will have to file a claim with your ottawa car insurance firm, and they will handle the process of getting compensation from the negligent driver.
On the other hand, underinsured motorist coverage is applicable when the negligent driver’s insurance coverage is inadequate to recover your damages.
As a victim, you need to make two claims: one against the faulty driver and one against your own insurer for underinsured motorist coverage.
You may also need to negotiate with your own insurance firm to receive fair compensation for your car accident claim. There are also various challenges and limitations related to it.
That’s why it is important to consult a car accident lawyer who can work with your insurance firm to ensure that all your expenses are covered up to your policy limits.
Final Thoughts
To summarize, underinsured and uninsured motorist coverage can protect you from drivers who do not have insurance or sufficient insurance to cover your injuries and property damages in a car accident. A car accident attorney will assist you with all legal options for required for a speedy recovery.
