Where Underinsured Motorist Coverage comes into play is when you get into an accident, the other driver is at fault, but he or she has low policy limits are you are severely hurt. If the at-fault driver has a policy limit of $50,000; but you have over $50,000 in medical bills alone, it is obvious that you will not be fully compensated by the at-fault party’s insurance because they will simply send you a check for $50,000. Underinsured motorist coverage is a type of coverage that you can add to your existing policy that will kick in if such an event occurred. You would then be able to get the policy limit of the at-fault driver, and then recover the remainder of your damages from your own insurance until you were fully compensated for your injuries.
Commercials on television are constantly attempting to persuade consumers to switch insurance providers because they offer the lowest prices. In reality, insurance companies can offer a wide variety of price ranges. If you only want the minimum coverage that is legally allowed in the state of Utah, you can get insurance for extremely cheap. In Utah, not only are you not required to have uninsured and underinsured coverage. You can also opt-out of comprehensive collision coverage. A bare-bones policy in Utah would be a liability-only policy with limits of $25,000 per person, $65,000 total per collision, or $15,000 in property damage. This type of policy is inexpensive with just about any insurance company out there.
However, it is not near enough coverage for anyone to feel safe driving on the road. What is the point of having insurance if you are not even protected?
Photo By Emily Elstner
This article is offered only for general information and educational purposes. It is not offered as and does not constitute legal advice or legal opinion. You should not act or rely on any information contained in this article without first seeking the advice of an attorney.
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