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The Difference Between Uninsured and Underinsured Motorist Coverage

The Difference Between Uninsured and Underinsured Motorist Coverage

In cases involving car crashes, insurance coverage issues sometimes arise. You might have heard of the terms uninsured motorist coverage as opposed to underinsured motorist coverage. Although they sound the same, they are vastly different in their use. If you have a issue regarding these coverages, then you need to discuss it with a lawyer because each policy is worded a little differently.

car accident injuries not covered by insurance 

I. Uninsured Motorist Coverage: this applies where the person is injured by the negligence of a identified uninsured driver or a hit and run driver who is not
apprehended. Significantly, the injured person has to be able to prove that either he personally or his car was struck by the uninsured driver. Each policy has a limit as to the maximum it will pay per occurrence.

II. Underinsured Motorist Coverage: this applies where the injury causing party has some insurance coverage but the value of the injury exceeds the defendant’s policy limits but the injured person has higher policy limits.

Underinsurance Example

Plaintiff is injured by the negligence of the defendant. Defendant has a policy which has limits of $50,000.00/$100,000.00. Usually, a policy like this will limit the defendant to a maximum of two payments of $50,000.00 per policy period, so the insurance company will never pay more than $100,000.00.

Lets assume that our driver has a injury worth over $100,000.00. The most he/she can receive is $100,000.00, under most policies. The injured person will receive $50,000.00 from each policy. Usually, the underinsurance is added to whatever money the defendant’s policy maximum amount is to equal the policy limits of the injured person’s policy.

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