A driver may end up having to make an underinsured or uninsured motorist claim from their own insurance policy if they have been in an accident with someone who falls in either of those categories.
These coverages come to the picture when an at-fault driver who was culpable of the accident has no insurance, or a poor one to be able to pay for all of the damages. When is a claim to be made under these coverages? That will be explained below.
Uninsured Motorist Coverage, what is it?
The uninsured motorist coverage is made available to those who would like further protection than their standard liability coverage. This coverage pays the victim for the damages caused by the uninsured driver, an example being a motorcycle accident or injury. They do not have to worry about not being paid.
It is very unlikely that a person who is driving without an insurance is not going to be able to just write a check for the amount of all the damages. If someone doesn’t have an uninsured coverage, then they would not get paid because recuperating money from an individual is not as stable as if it were to be from an insurance company. So, the best thing would be to make a claim through the insurance’s uninsured motorist provision if the driver would like to get compensated.
Finding out whether the at- fault driver who has just collided with the car has insurance or not will most likely come to light that same day. Police officers will ask all the information upon arrival at the scene. They can determine whether a person has a valid insurance or not. Also, exchanging insurance information is important as soon as an accident occurs.
Underinsured Motorist Coverage, what is it?
Very similar to the uninsured coverage, underinsured is for those people who have a liability insurance policy, but lack the sufficient coverage to cover the damages that were done. This coverage is a way to fill the whole between the at-fault driver’s limit in coverage and the damages and expenses that were suffered by the driver.
Underinsured motorist claims are made to the insurance companies when the at-fault driver’s liability limit falls short of the damages amount. For example, Driver A and Driver B get into an accident. Driver B is the one at-fault. Driver A has suffered $30,000 in damages, but Driver B only has a $10,000 liability coverage. In that case, Driver A would have to make the claim through the underinsured claim on their own policy to cover the difference.
Knowing when to make an underinsured motorist coverage can take some time. A person needs to first asses how much damaged they endured due to the car accident, and how much they will lose in the future because of it. It is very apparent that when the underinsured driver has the minimum limit in their liability, a claim will have to be placed. If there is a higher limit than the minimum, then figuring out if the damages are over that certain number can be difficult to determine. A claim should be made as soon as the discovery of the at-fault driver was made.
Act Fast If You Decide to Claim
The time for an underinsured of uninsured claim is very short. The claim needs to be immediately filed as soon as the driver knows whether or not the at-fault driver lacks a quality or doesn’t have insurance. Sometimes, policyholders have less than 30 days to claim.
The coverage limit for an uninsured or underinsured policy cannot surpass that of the liability coverage. If the liability coverage is $15,000, then the uninsured or underinsured limit has to be equal to or less than $15,000.
Bad Faith Occurrence
Insurance companies will investigate to the very last detail what happened when any claim is made. Their actions can lead to a bad faith claim. They must deal with claims in good faith. They cannot use extreme adversarial technique, if they do, then it could be means for a bad faith claim against them.
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