UN/Underinsured Insurance Coverage
Drivers and passengers alike should make sure that they have proper uninsured/underinsured coverage. This will help protect them from a negligent driver who has low policy limits that may not cover your injuries or the damage to your vehicle.
The Importance of Uninsured/Underinsured CoverageUninsured or Underinsured Vehicle
What happens when the at-fault driver doesn’t have enough insurance to cover my injuries or flees the scene of the accident?
You are driving down the 405 freeway on the way to a friend’s house when…BOOM! Another car just sideswiped you, causing your vehicle to spin out of control and your life to flash in front of your eyes. When you finally come to a complete stop, you are shocked, confused and in pain. As you look around, attempting to gather yourself, it appears that there are so many people around you, but nobody is actually WITH you. The driver of the car that hit you has fled the scene and you don’t have any information to tie them to this accident. What happens next?
You do a tremendous job of getting the necessary medical care that you need and you have researched and hired a competent attorney to assist you through this difficult time. The medical bills are high, your car was totaled, you have missed several days of work and you are going to need medical care in the future.
But, wait a minute! Who is going to pay for all this? The other driver fled, no witnesses have come forward and a police investigation didn’t get you anywhere.
Luckily, you had the wherewithal to purchase UNDERINSURED/UNINSURED coverage through your own car insurance carrier. What does this mean exactly? It means that your insurance will now be responsible for the payment of your medical bills, future medical care necessities, lost wages, pain, and suffering, etc. UP TO the amount of underinsured/uninsured coverage you purchased.
In the state of California, the statutory minimum car insurance coverage that a driver must carry is $15,000 per individual and $30,000 per incident. With medical billing become more and more egregious, anyone that has been involved in a car accident will attest to the fact that this statutory minimum is not a lot. As a result, Khalil Law Group always recommends that its clients obtain underinsured/uninsured coverage through their own insurance carrier. In the event that the driver of another vehicle causes an accident, you can use your uninsured/underinsured coverage as a sort of supplemental insurance coverage.
Hypothetically SpeakingScenario 1:
Let’s use the same scenario like the one we used to start this informative BLOG post. Hypothetically speaking, let’s also say that the total medical billing was $20,000 and your attorney feels that your claim is worth $50,000 total. Thankfully, you have purchased uninsured/underinsured coverage through your own insurance in the amount of $50,000 per person and $100,000 per incident. Given the fact that nobody knows who hit you, you can demand $50,000 from your own insurance, as you are covered up to this amount.
Driver A is injured after being rear-ended by driver B while at a stoplight. Driver B has the minimum insurance coverage of $15,000 per individual and $30,000 per incident. However, driver A has purchased underinsured/uninsured coverage with their insurance policy that gives them $25,000 per individual and $50,000 per incident. Driver A’s attorney could potentially demand $15,000 from driver B’s insurance and an additional $10,000 from Driver A’s insurance ($15,000+$10,000= $25,000).
If you have been involved in a car accident, it is important to contact a competent and trustworthy attorney to advise you of the ins and outs of this system. An attorney to help you navigate through all the various rules, laws and customary events that follow an accident. Help us keep you informed.