What Is Uninsured And
Underinsured Motorist Protection?
Uninsured motorist coverage allows you to collect damages from your own policy if you are injured by a driver who has no insurance.
Underinsured motorist coverage allows you to collect damages from your own policy if you are injured by a driver who does not carry adequate insurance to compensate you for your injuries.
Under current law uninsured and underinsured motorist coverage is optional.
Example - Underinsured Motorist Coverage - Suppose you are involved in an accident caused by another driver, and you are awarded $50,000 in damages. If the other driver has only a minimum liability policy of $15,000, he is underinsured because he does not have adequate coverage to compensate you for your injuries. The maximum amount his insurance company will pay is $15,000. The chance that you will be able to collect any money from the person that caused your injuries in excess of their insurance policy is almost zero.
However, if you choose $25,000 in underinsurance benefits, your insurance company will pay up to $25,000 of the remaining $35,000. If you had chosen at least $35,000 in benefits you would be able to recover the entire $50,000 award.
WHAT TYPE OF COVERAGE SHOULD I HAVE?
As a car owner in Pennsylvania, you are responsible to carry at least the minimum amount of auto insurance required by law ($15,000) to protect someone that you may injure.
However, you cannot count on the person that causes an injury to you or your loved ones to carry adequate insurance, or to carry any insurance at all. If you have rejected underinsured and uninsured motorist coverage you may not be able to collect damages that adequately compensates you for your injuries. That’s why it’s crucial that you maintain your underinsured and uninsured motorist coverage and have it restored if you have rejected the coverage.
If you still have questions about your Pennsylvania auto insurance coverage, call Marc Pachtman, Esq. at 610-859-3700, or toll free: 866-86-TOUGH. Or your questions now.
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