Car accidents are stressful enough without worrying about whether the other driver has enough insurance to cover your injuries. Unfortunately, the reality is that many drivers on Pennsylvania and Delaware roads do not have insurance at all. In these cases, you may have the option to rely on either uninsured or underinsured motorist coverage. Here is the difference.
What Is Uninsured Motorist Coverage?
“Uninsured motorist coverage” is there to protect you when someone without any insurance hits you, and even though Pennsylvania law says all drivers need to carry liability insurance, about 6 to 8% of people on the road are driving around with no coverage. When one of these uninsured drivers causes an accident that hurts you, uninsured motorist coverage takes care of your medical bills, lost income, and compensation for your pain and suffering.
What Is Underinsured Motorist Coverage?
“Underinsured motorist coverage,” on the other hand, comes into play when the person who hit you does have insurance, but not nearly enough to pay for all your damages. Pennsylvania only requires drivers to carry $15,000 per person and $30,000 per accident in bodily injury liability, which rarely comes close to covering the full cost of a serious injury. When the at-fault driver’s insurance maxes out, and you still have unpaid bills and other losses, your underinsured motorist coverage kicks in to cover the gap.
How Do These Coverages Work Together?
Most insurance companies bundle uninsured and underinsured motorist coverage together as one option, and when you are setting up your auto insurance policy in Pennsylvania, you get to pick the coverage limits you want. You can match or go higher than your liability limits if you choose, and this flexibility allows you to customize your protection based on your personal circumstances.
Why Should I Purchase UM/UIM Coverage?
Pennsylvania does not force you to buy uninsured or underinsured motorist coverage, so it is completely optional—but skipping it to save a few dollars each month could turn out to be one of the most expensive decisions you ever make.
Think about what happens when someone with bare-minimum insurance runs a red light and T-bones your car: Their $15,000 policy will likely get used up fast, and then you are stuck holding the bag for the rest. Without your own UM/UIM coverage, you will have no safety net, and you could pay out tens of thousands of dollars from your pocket.
Can I Stack My Coverage?
Pennsylvania gives you the option to “stack” your coverage if you have more than one vehicle on your policy, and stacking means you can add up the uninsured and underinsured motorist limits from each car you insure. Consider this option, especially if you want better financial protection for your whole family.
Will Filing a UM/UIM Claim Increase My Rates?
Some people worry that filing a claim against their own insurance will cause their rates to go up—but Pennsylvania law actually protects you from this situation. Your insurance company cannot raise your premiums just because you filed an uninsured or underinsured motorist claim.
What Happens if I Reject This Coverage?
When you buy car insurance in Pennsylvania, the company has to offer you uninsured and underinsured motorist coverage. If you do not want it, you have to sign a special form that says you are turning it down.
Get Help With Your Claim From Our Media Car Accident Lawyers at McCann Dillon Jaffe & Lamb, LLC
If someone without insurance or with too little insurance hits you, reach out to our Media car accident lawyers at McCann Dillon Jaffe & Lamb, LLC for assistance. We have advocated for people in situations just like yours for years, and we have recovered over $200 million in verdicts and settlements over the past 15 years. For a free consultation, call today at 215-569-8488 or contact us online. With office locations in Philadelphia and Abington, Pennsylvania, and Wilmington, Delaware, we proudly serve clients in the surrounding areas.