How much car insurance do you need (Underinsured Motorist Coverage)?

In my previous blogs, I began discussing the question, “How much car insurance do I need?” My two prior blogs focused your liability car insurance coverage and your uninsured motorist coverage. Today, I am going to focus on the purpose of your underinsured motorist coverage and how important underinsured motorist coverage truly is.

Underinsured motorist insurance coverage is the part of your car insurance that will pay you if you are hurt in a car accident by another driver who does not have enough car insurance to fully compensate you for your injuries and damages that you have incurred. Once again, at Zanes Law, we regularly see clients who are hurt by a driver who is insured, but does not have enough insurance coverage to adequately compensate our clients. This is where underinsured motorist coverage comes into play.

As I have previously said, I look at it from this perspective … when someone is having trouble paying all of their bills, they typically don’t stop driving and/or give up their car. In addition, they tend to choose groceries and rent over paying for their car insurance during that difficult time. So, they let their car insurance lapse or they purchase the minimum amounts available so that they can legally drive. If you are unfortunate enough to be hit by this person who has low insurance policy limits, you may not be fully compensated for your injuries if you aren’t carrying underinsured motorist coverage on your car insurance policy. You will use your underinsured motorist policy to completely take care of your medical bills and to compensate you for your injuries, missed time from work, pain and suffering, etc.

For the above reason, you MUST purchase underinsured motorist coverage when you purchase your liability insurance and your uninsured motorist coverage. Similar to your uninsured motorist coverage, underinsured motorist coverage exists to protect you and your family, and is relatively inexpensive coverage to purchase. On many insurance policies, it may simply be an additional $10 to $15 for six months’ worth of coverage, and I can guarantee you that if you are hurt in an accident that’s not your fault, you will be glad that you have it.