What is Underinsured Motorist Coverage?

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Underinsured motorist coverage is there to help you pay your bills when another driver’s insurance maxes out. If you get into an accident and sue the at-fault driver, their insurance policy has a limit. If you win up to that limit and still have bills to pay, underinsured motorist coverage can be quite helpful. Our Monmouth County car accident attorneys can help you navigate this process if you and your loved ones get injured in a crash.

Do You Have to Carry Underinsured Motorist Coverage?

You do have to carry underinsured motorist coverage, but this is one situation in which you may want to carry more than the state’s minimum. New Jersey requires just $5,000 in coverage. You can ask your insurer for more, in increments of $5,000. You just cannot exceed your liability limits.

When Does Underinsured Motorist Coverage Kick In?

The underinsured motorist coverage is designed to kick in after another driver’s liability policy has been exhausted. Every insurance policy has a limit. If you sue an at-fault driver for an accident and win, their policy can only pay out up to their limit.

What happens if you have more medical expenses? What happens if your passengers were also hurt during the crash? That is when you need your underinsured motorist coverage. You can submit a claim with your own insurer and get them to cover as much of the gap between your expenses and what the other driver’s policy paid you as possible.

Do I Need This Coverage If I Have Health Insurance?

Some drivers believe that having significant amounts of underinsured coverage is not worthwhile if they already have health insurance that can pay for their injuries. Having a good healthcare plan is certainly nice, but it does not necessarily mean that you shouldn’t add additional coverage to your policy.

Insurance plans have deductibles, so you could still end up paying out of pocket for medical expenses. You also do not know if you’ll have passengers with you when you get into a crash. What if one of your passengers does not have good health insurance? They could end up facing thousands of dollars in expenses if you do not have adequate underinsured driver coverage.

Do I Need to Hire a Lawyer?

Hiring a lawyer can help you secure the compensation needed to pay your bills after an accident. Your lawyer can build a case against another driver and win damages from their insurance policy. Then they can help you file a claim with your own insurance coverage to make sure that your underinsured motorist coverage is honored.

Contact Our Legal Team

So if you have been injured in an accident and you’re having difficulties securing the compensation that you deserve, contact the Wilton Law Firm. We can offer you a free consultation and tell you more about your legal options and what experienced personal injury attorneys can do to assist you.