What is Underinsurance and Uninsurance?

April 29, 2014 / 12:00 am

In the last couple of years people have been trying to save money by reducing the amount of insurance they carry.

Combined with the fact that many people have little money or assets to seize, we are now facing a scenario where people can drive risk-free without any concern for the damage they cause on the roadway. Drivers are not concerned about being sued, since you can’t get blood out of a stone.

The last few suits that I have been involved in dealt with this very scenario. It’s hard to tell someone who is facing a lifetime of pain that there is little money to be recovered to ease their financial burden.

But there is something that you can do: purchase or increase your underinsurance and uninsurance coverage. These coverages can be found on the Declaration Page of your auto insurance policy.

If you have this coverage, you can apply for this money should you be struck and injured by an uninsured driver or one who carries very little insurance. Recently we were able to get several hundred thousand dollars to an injured motorist struck and left at the scene by a driver with a suspended license and little insurance. It meant the difference between a comfortable future and one of uncertainty with mounting medical bills.

Everyone should check their policies. If you don’t have this coverage, get it. If you have it, make sure that you have at least $100,000 in coverage. It might cost more but when tragedy hits you will be glad you spent the money.