You’ve been involved in an accident and the other driver, who was responsible for the incident, doesn’t have the insurance to cover your losses. Now, you may have a few medical bills and damage to your vehicle. Are you out of luck and going to have to pay these costs out of your pocket? Not yet. If you have underinsured/uninsured auto insurance, a common type of car insurance often recommended by insurers, you may be able to file a claim under your own policy for the losses.
What is an Underinsured Auto Insurance Plan?
The benefit of underinsured car insurance is to pay for your losses if the other driver does not have enough coverage to completely pay for your losses. This policy helps to fill in the gap between what the other driver’s policy will cover and what your bills are. For example, if you are in a car accident where the other driver is at fault and suffer $30,000 worth of losses including medical bills, time lost at work, property damage and even long term care, but the other driver’s coverage taps out at $20,000, you may be responsible for the other $10,000. If you have underinsured coverage, though, you can file a claim against your own policy to cover that difference.
There are a few things to keep in mind on this coverage:
- As soon as you learn of the limited coverage of the other driver, contact your auto insurance provider to alert them to this situation. You can file a claim (and often should) right away for the losses.
- There are limits on how much you can claim for, generally listed on your policy.
- Most insurance companies do not allow for high levels of underinsured motorist coverage. Rather, they will keep these claim limits low for their own financial protection.
If you do not have underinsured auto insurance just yet, add it to your current or new car insurance policy. There is no way to know who is on the road and the amount of coverage they have. If you have a claim where you need financial help, turn to your insurer right away to get the coverage you need for your losses.
We’re here to assist you. Call Turrentine Insurance Agency at (281) 476-0557 for more information on Deer Park auto insurance.