Many people have seen the commercials on TV that indicate obtaining state-mandated insurance through some unknown company or advertisements for SR-22 Insurance. Many people on the road today are traveling down the road with this type of insurance which we generally refer to as ‘sub-standard’ insurance. The state minimum requirement for liability at-fault insurance is currently $25,000.00 per person and $50,000.00 per total accident. What this means is that if you are injured by the negligence of someone else, that the other driver must carry at least $25,000.00 for injury to 1 person and $50,000.00 of insurance for injury to as many people that are in the vehicle or vehicles. This type of insurance coverage is mandated by state law.
However, there is a fairly unknown type of insurance that most people probably do not know that they even have known as Underinsured Motorist coverage. Underinsured Motorist coverage is insurance coverage that you carry on your car insurance policy for situations where an at-fault party causes an accident and they carry very low insurance and you or the occupants of your vehicle have very serious injuries and very high levels of medical bills. Your insurance policy can then step in and potential help pay for your medical bills and/or damages. Underinsured Motorist coverage or UIM coverage is something that very few people look in to and most people have no idea their amounts of coverage through underinsured motorists.
The law states that you can purchase Underinsured Motorist coverage in the amount equal to the amount of liability coverage that you have for injuries to other parties. For example, if you carry $100,000.00 of liability insurance you can also carry $100,000.00 in Underinsured Motorist coverage for in most cases very little additional cost to your auto insurance premiums. Given that many people today are strapped for cash and are using sub-standard car insurance in order to keep themselves legal to operate their cars, it is our opinion that nowadays it is very important that you make sure that you have adequate underinsured motorist coverage so that if you are involved in a serious accident with multiple people in your car that you have sufficient coverage to cover them as well as yourself if you are involved in an accident with someone who is carrying sub-standard insurance.
We would suggest that you contact your auto insurance carrier and ask them for a document which is commonly referred to as a Declaration’s Page. This will give you the amounts of your available liability insurance as well as whether you have purchased Underinsured Motorist coverage and in what amounts if you have. This will allow us to fully and completely evaluate your case when you come in.