Being involved in a car accident is a stressful experience, but it can become even more complicated if the other driver is underinsured. While many drivers comply with state insurance requirements, not all have sufficient coverage to fully pay for damages or injuries resulting from a crash. If an uninsured driver hits you, or even if the driver has some insurance but not enough, you could be left struggling with how to cover your expenses. In this article, we’ll explore what it means to be in an accident with an underinsured driver and how you can protect yourself.
What is an Underinsured Driver?
An underinsured driver is someone who has car insurance, but their policy limits aren’t high enough to cover the total cost of damages and injuries in an accident. In Florida, for example, drivers are required to have a minimum amount of coverage, but in many cases, this minimum doesn’t fully cover the cost of serious accidents. Underinsurance differs from being uninsured, where the driver has no coverage at all. While underinsured drivers may have some protection, it often falls short in significant accidents, leaving victims without the compensation they need.
Why Being in an Accident with an Underinsured Driver is Risky
If you’re hit by an underinsured driver, you may face a financial burden even if the accident wasn’t your fault. Medical bills, car repairs, and other related expenses can quickly add up, and the at-fault driver’s insurance may not cover everything. For example, if the other driver’s insurance only covers $25,000 in damages but your medical bills exceed $50,000, you’ll be responsible for covering the difference unless you have additional protection in place.
This can be particularly risky if you need long-term medical care or face other major expenses as a result of the crash. Without adequate compensation, you may be forced to dip into savings or take on debt to cover the shortfall.
Steps to Take Immediately After an Accident
If you’re involved in an accident, there are a few crucial steps you should take to protect yourself. First, ensure that you and any passengers are safe, and seek medical attention if necessary. Then, gather as much information as possible from the other driver, including their insurance details, driver’s license number, and contact information.
You should also document the scene by taking pictures of the damage to both vehicles, the surrounding area, and any visible injuries. If possible, collect statements from witnesses who saw the accident. Finally, make sure to contact the police and file an official report, as this can be critical in dealing with insurance companies later.
Contacting Your Insurance Company
Once you’ve gathered all the necessary information, reach out to your insurance company as soon as possible to report the accident. Provide them with the documentation you’ve collected, including the other driver’s insurance information.
If the at-fault driver is underinsured, your insurance company may be able to help. In many cases, you can file a claim through your own insurance if you have uninsured/underinsured motorist (UM/UIM) coverage. This type of policy is specifically designed to protect you in situations where the other driver doesn’t have adequate insurance.
Understanding Your Insurance Coverage Options
Uninsured/underinsured motorist coverage is an essential part of protecting yourself from financial loss in the event of an accident with an underinsured driver. UM/UIM insurance helps cover the gap between what the at-fault driver’s policy covers and the total amount of damages or injuries you’ve sustained.
It’s worth reviewing your own auto insurance policy to make sure you have sufficient UM/UIM coverage. Many people only carry the state-required minimum coverage, but this may not be enough to fully protect you. By adding UM/UIM insurance, you can safeguard yourself from out-of-pocket expenses after an accident.
What Happens if the Underinsured Driver Can’t Pay?
In some cases, the underinsured driver may not be able to cover the remaining damages, even after their insurance has paid out the maximum amount. In this situation, you have the option to pursue a personal lawsuit against the driver, but this isn’t always a practical solution, especially if the driver has limited financial resources.
Another option is to work with your own insurance company to negotiate a settlement that covers your expenses. This is where having a personal injury attorney can be invaluable. An attorney can help you explore all of your legal options and negotiate with insurance companies on your behalf to ensure you receive the compensation you deserve.
The Role of a Personal Injury Attorney
Consulting with a personal injury attorney after an accident involving an underinsured driver is crucial. An attorney can help guide you through the claims process, ensuring that you are fully compensated for your injuries and damages. They can also help you understand your rights, negotiate with insurance adjusters, and, if necessary, file a lawsuit against the at-fault driver.
Steps to Protect Yourself in the Future
The best way to protect yourself from the risks of underinsured drivers is to be proactive. Review your auto insurance policy regularly to ensure you have adequate coverage, including UM/UIM insurance. This added layer of protection can give you peace of mind in the event of an accident.
By taking these precautions, you can reduce the financial stress that comes with being involved in an accident with an underinsured driver and ensure that you are well-prepared for any situation on the road.
