Uninsured or underinsured motorist coverage is incredibly important for people to have. It’s often overlooked, unfortunately. Hopefully, it’s not overlooked before it’s too late.
Essentially what that means is: If you’re in an automobile accident and the other driver hits you, and causes significant injuries, and they don’t have any insurance, then if you have your own uninsured motorist policy, whatever your policy limit coverage is, you would be able to make a claim against your own carrier for those injuries. It has absolutely no negative effect on your own rates, on your own insurance, because that’s why you have that type of coverage.
Underinsured motorist is a little bit different. So let’s say you’re injured in an automobile accident. The other driver has $15,000.00 in insurance coverage, but your injuries are much more severe than that. Well, if you have a larger policy than theirs, then you may be able to make a claim for underinsured motorists, which would be the difference between the other person’s limit and yours; very important coverage and something everyone should have.