What’s uninsured motorist coverage and what type should you have?
As discussed in previous blog posts, medical payments coverage is available to you whether or not you are or not at fault for an accident. This form of insurance coverage can help you pay your health insurance deductible after an accident. Now, medical payments coverage does a lot of things, but it does not help you in any way, shape or form pay for your pain and suffering, lost wages, future medical expenses and other losses. For those types of economic damages, you will either need to recover compensation from the at fault party’s insurance policy, or from your own uninsured motorist coverage.
So, what is uninsured motorist coverage and what type should you have?
If you are injured in an accident by another driver who does not have insurance, your uninsured motorist coverage will help you recover from economic and non-economic losses that you may have experienced. While you may not be able to control whether or not other drivers are insured, you do have control over your own insurance coverage and the extent that insurance will compensate you for your losses.
First, you should review your insurance policy to understand the limits under your current uninsured motorist policy. Look for what is called an “Add On” policy. Under this type of coverage, your uninsured motorist coverage is “added on” to any at-fault liability coverage the other driver has.
Let’s say for example that the at fault party has $25,000 in insurance, and you have $25,000 in uninsured motorist coverage. For all practical purposes, your insured motorist policy isn’t going to add any additional coverage to you in the accident. But let’s say that you have $25,000 in what’s called add on coverage or added on uninsured motorist coverage. In that event, you will have the possibility of recovering up to $50,000 in damages.
The type of uninsured motorist coverage that you have will make a big difference in the compensation that is available to you after an accident. If you have been injured in an accident and have questions about your insurance policy, call The Sessions Law Firm today.