How does underinsurance coverage help you?

On Behalf of | Jan 10, 2022 | Car Accidents, motor vehicle accidents

A car accident can result in more than just vehicle damages. You can suffer severe or potentially permanent injuries that require extensive and costly medical treatment.

While the law requires that drivers in New York carry car insurance to cover bodily injury and other damages, some people still drive without it. Securing underinsured coverage can help you cover costs when you have a collision with an uninsured motorist.

What is underinsurance coverage?

When you sustain injuries in a car wreck caused by another driver, you can seek compensation for your damages. If the motorist does not have an adequate liability insurance policy, you may face having to pay for expensive losses on your own.

You can sue the other driver, but you may end up covering the costs yourself if they do not have the money to pay your bills. Uninsured/underinsured motorist coverage allows you to file a claim through your insurance company for damage payments.

What does uninsured or underinsured insurance cover?

Your benefits depend on your policy. All car insurance policies in New York must include basic uninsured motorist coverage to pay for economic losses such as medical treatment bills and lost wages. This insurance provides $25,000 in bodily injury compensation per person and $50,000 per accident.

When does uninsured motorist coverage apply?

You can access this type of insurance in the following circumstances:

  • You are a victim of a hit-and-run collision
  • Another party is responsible for your accident
  • The at-fault person does not have any or enough liability insurance to pay for your damages

Your uninsured/underinsured motorist coverage can prevent you from experiencing significant financial losses following an accident. However, you must understand how to legally prove the other driver is at fault when seeking the compensation you deserve.