Dealing with a car accident is always stressful. However, when the other driver doesn’t have insurance, the situation becomes even more complicated. Knowing the potential consequences and how to seek compensation can make a big difference.
Uninsured and underinsured drivers explained
Uninsured drivers have no car insurance at all. Meanwhile, underinsured drivers have insurance with coverage limits that are too low to cover the damages and injuries they cause. Despite legal requirements, some drivers still fall into these categories, putting others at risk in an accident.
The impact of uninsured or underinsured drivers
When an uninsured driver causes an accident, they must personally cover all damages, including medical bills, property damage, and lost wages. However, many uninsured drivers lack the financial resources to pay for these costs, leaving people struggling to cover their expenses.
Underinsured drivers might have some coverage, but if the damages exceed their policy limits, you must cover the remaining costs. This burden can be especially heavy if the injuries are severe and require long-term care.
How to secure compensation
Drivers must carry uninsured motorist (UM) and underinsured motorist (UIM) coverage as part of their auto insurance policy. This coverage protects you if you’re involved in an accident with an uninsured or underinsured driver. Your UM and UIM coverage pays for your medical bills, lost wages, and other damages up to your policy limits.
If your damages exceed your UM or UIM coverage limits, or if you don’t have this coverage, you might still have options. You could file a lawsuit against the at-fault driver to seek additional compensation.
Importance of understanding your coverage
Accidents with uninsured or underinsured drivers can leave you in a tough spot, but knowing your insurance coverage and legal options makes a big difference. Being prepared can offer peace of mind and financial security when it matters most.