Uninsured vs Underinsured


What is the Difference between Uninsured and Underinsured Motorist Insurance?

With the way our society is currently set up, we rely heavily on cars and other vehicles for transportation throughout our day. Whether it’s driving a car to work or the grocery store, or riding a motorcycle to enjoy the nice day, there’s no denying how huge a part of our lives automobiles have become. Unfortunately, along with the benefits of driving a car comes risks. Though accidents are rare, they’re still a real possibility - and they can range from fender benders to fatal damage.

The auto insurance industry is a necessary part of making sure people can drive safely and with confidence that they’ll be covered in the case of an accident. What happens, though, if you get in an accident and the cut-rate insurance of the other driver doesn’t cover your injuries? This article goes into the difference between uninsured and underinsured auto coverage, and how these two optional policies can help make a big difference in a serious injury situation.

Uninsured Motorist Insurance

As the name suggests, this insurance kicks into effect when you’re in an accident with a driver who is uninsured. This additional coverage offers you the peace of mind that you’ll get the financial compensation from your injury to keep moving forward with your life.

Covered expenses include

  • Medical Bills
  • Lost Wages
  • Pain and Suffering Compensation

In addition to covering your expenses from uninsured drivers, Uninsured Motorist Insurance also covers you in the unfortunate situation of a hit-and-run driver. When someone hurts you and damages your vehicle, it makes sense that they should pay for the damage. Unfortunately, whether it’s to avoid legal trouble or increased premiums, some unsavory individuals will flee the scene of the accident and leave you with a big mess on your hands.

Knowing that you’ll be covered even if you don’t have the information of the other driver is well worth the additional cost of uninsured motorist insurance.

Underinsured Motorist Insurance

Underinsured Motorist Insurance functions similarly to Uninsured Motorist Insurance, but offers less benefits with an accompanying lower cost.

Just like the uninsured option, this insurance covers

  • Medical Bills
  • Lost Wages
  • Pain and Suffering Compensation

The main difference between the two of these plans is that underinsured insurance is intended only to serve as gap coverage between the at-fault party’s insurance and the actual medical expenses.

Often times drivers will just carry a bare-bones policy that is just enough to avoid breaking the law. If the driver can’t pay out of pocket in the case of an accident, you’re stuck going through legal proceedings or even just stuck footing the bill.

While underinsured insurance won’t protect you against uninsured drivers or a hit-and-run situation, it’s a lower cost option that can still save you tons of money in the event of an accident with a driver who has poor coverage.

Protect Yourself

While auto insurance is required by law in the United States, many drivers either shirk this responsibility or carry plans that will not cover serious damage to you and your vehicle. A little bit extra on your monthly insurance payment is more than worth it when you consider the high amount of medical bills and lost wages you could end up with in the case of an accident. Protect yourself, and talk to your auto insurer about Underinsured and Uninsured motorist insurance, today!