So, let’s say you are driving down the road, obeying all the rules when, suddenly, another car rear-ends you. Even if the damage was minimal, an accident can be devastating. In most cases, the other driver’s insurance company will cover these costs on your behalf. But what if they can’t? What if the driver is underinsured and doesn’t have enough coverage for liability, or even worse, has no coverage at all? Then what happens? Who pays for damages and/or your medical bills? Let’s discuss uninsured vs underinsured coverage in more detail and what you can do if this ever happens to you. 

A Car Accident Can Happen to Anyone.   
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Uninsured vs Underinsured Drivers: What’s the Difference? 

Uninsured and underinsured status is based on whether a driver’s liability coverage will help victims recover: 

Uninsured drivers are those who do not have car insurance or even liability insurance. Indiana law requires motorists to have insurance when driving or parking on public roads—it’s illegal to drive without car insurance. The main difference between uninsured and underinsured drivers is that uninsured drivers have no insurance.  If hit by an uninsured driver, you would be able to bring a claim against your insurance company under your uninsured motorist coverage to recover for medical expenses, pay loss, and current and ongoing pain and suffering.   

Underinsured drivers have car insurance and liability coverage, but their coverage amount is less than the coverage amount for such losses under your auto policy. For example, if you are involved in an accident and the other driver only has the state minimum coverage of $25,000 per person for bodily injury and the value of your loss is $90,000 your underinsured motorist coverage would come into play. If the value of your UIM coverage was $100,000, you could recover the $25,000 in coverage from the other driver and then recover an additional $65,000 under your policy.  

As a victim in an accident, if your policy includes uninsured and underinsured coverage, then your insurance provider should provide compensation up to the limit of coverage under your policy. Unfortunately, insurance companies may refuse to cover your claim; this may be considered to be bad faith insurance practice, an insurer’s attempt to deny you coverage or give you significantly less money than your claim is worth.  

Foley & Small, Here to Help You 

Even though in Indiana, state law requires motorists to have insurance, many drivers are either uninsured or underinsured. If you have been in a car accident with a driver with no insurance or inadequate insurance, then you can take legal action. At Foley & Small, we are an experienced team that represents our clients, including those with uninsured or underinsured claims. Please contact us today, so we can help you.  

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