After an accident, you should always gather insurance information from the other party. It is important to understand that it is common for people to only carry a minimal amount of insurance. When this happens, it can complicate your claim.
The insurer will only pay as much as the policy limit for claims. If you have damages over that amount, you will have to take the other party to court. U.S. News and World Report explains that you may not always be able to collect the full amount from the other person, so you can protect yourself by getting underinsured motorist coverage.
How it works
If you carry underinsured motorist insurance, it will pay for your losses due to an accident with someone who does not have enough insurance to cover your full expenses. Your policy will usually cover both medical expenses and any damage to your vehicle. Do keep in mind this insurance will only cover you if the other party was at fault. If you caused the accident, you will have to use the collision coverage under your policy.
How to use it
You can easily use your underinsured motorist coverage by making a claim to your insurer. The insurance company will figure out the details and communicate with the other party’s insurer about how much it will cover. You should not have to do much more than provide information about the accident to your insurer.
The law does not require you to have underinsured motorist coverage, but it is a good idea. It can offer you protection against drivers who will not have enough insurance to pay for your expenses in a serious accident situation.