Millions of auto accidents occur every year. Given the high speeds and low weight of cars on the road, many crashes result in serious injuries. While medical advancements can do amazing things to treat injuries, treatment comes at a high cost. Medical bills for even minor injuries can run thousands of dollars.
If you’re hurt in an auto accident, you’re going to want treatment and rehabilitation that restores “normal life” to you and your family. Underinsured motorist coverage can provide the financial help needed when the at-fault driver’s car insurance runs out.
Underinsured motorist coverage is similar to Part 3 on the MA auto policy, uninsured motorist coverage.
Both types of coverage apply only if you are injured in an auto accident where another driver is at fault. Whereas uninsured motorist coverage applies if the at-fault driver either does not have liability insurance coverage or cannot be found, underinsured motorist coverage applies if the at-fault driver has liability coverage but does not have sufficient limits to fully compensate you for damages.
If you’re hurt in an accident and someone else is at fault, the coverage will pay if the other driver’s does not.
How Important Is Underinsured Motorist Coverage?
How many people do you think carry sufficient liability coverage to pay medical bills for serious injury? Many states only require $25,000 in liability limits, which is amazingly little when you consider the potential for serious injuries. In reality, bills from even a short hospital stay can surpass the limits of many drivers’ liability coverage, and your underinsured motorist coverage may be needed to pay the difference. When you consider the relatively low minimum auto liability limits required by most states, it’s easy to see that your potential costs from an accident with an underinsured motorist can be very significant.
How Much Coverage You May Need
The rule of thumb is that underinsured motorist limits, if provided separately, should be the same as the liability (and uninsured motorist) limits on the policy. The legal damages from an injury or a death in an accident can include areas like loss of income and other costs of recovery. These can exceed the direct bills from the doctor and hospital. A death claim can also include potential future earnings and loss of care and services to survivors.
Considering the potential damage from an accident with an underinsured motorist, you should seriously consider buying as much coverage as you can afford and is allowable by the insurance company.
Protect Yourself if Someone Else Is at Fault
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Vermont Mutual’s participation is the latest step in an ongoing collaboration among agents, carriers and Boston Software, according to Charlie Walsh.”We are all trying to deliver the kind of products and services that today’s consumers want,” he said. “Things are really starting to click now. Nearly 500 agencies participate in Leads and this year alone online insurance shoppers have generated more than 50,000 quotes and quote requests. The addition of a great company like Vermont Mutual will definitely help with the momentum.”
