Uninsured & Underinsured Insurance, Are you Covered?

In a perfect world, all 228 million U.S. drivers are adequately insured. If this were the case, when you are involved in a car accident that is not your fault – you would simply file a claim with the at-fault driver’s car insurance company, get your car repaired and receive compensation for any lost wages or medical expenses. There would be no out-of-pocket expenses to you.

However, according to the Federal Highway Administrations Highway Statistics 2019, one in eight, or 28.5 million U.S. drivers are operating their vehicle without insurance.

What happens when a negligent driver crashes their vehicle into yours and that individual has low liability coverage or no insurance at all? Or, what happens if you are involved in a hit-and-run accident where the other driver leaves the scene?

While virtually all states require drivers to have auto liability insurance before they can legally drive a motor vehicle, the state liability limits may not be enough to cover all of the expenses in the event of a serious accident. This is where uninsured and underinsured motorist coverage comes into play.

Underinsured motorist coverage protects you if you are in an accident involving someone who does not have sufficient insurance. It steps in when the at-fault driver doesn’t have enough insurance to cover all the damages they have caused. A handful of states require underinsured motorist coverage, while more require uninsured motorist coverage.

In Nebraska, the mandatory requirements for uninsured/underinsured motorist coverage are $25,000 per person and $50,000 per accident for bodily injury liability coverage, and $25,000 per accident for property damage liability coverage. Far often, this is not enough, especially when you consider the average hospital bill following a car accident is close to $60,000.

Drivers often choose to set their uninsured and underinsured motorist limits at the same level as their liability limits. All three types of coverage are designed to protect your financial assets from the expenses of a car accident, so the higher your net worth, the higher you may want these limits to be.

If you have been involved in a motor vehicle accident, you need to be sure you are receiving fair compensation for your damages. It is highly advisable to discuss the scenarios with an attorney who is experienced in these matters to help guide you through the process and help you obtain the fair compensation you deserve. The attorneys at AKC Law can answer any questions you mayhave.