State laws generally require all drivers to carry at least a minimal amount of liability insurance before they can operate a vehicle legally. The problem with these well-intentioned laws, however, is that not all drivers actually comply, or else they may only purchase enough insurance coverage to meet a minimal standard. Drivers who want to protect themselves financially from an encounter with an uninsured or underinsured motorist may want to consider adding underinsured motorist coverage to their existing insurance package. Underinsured motorist coverage, often bundled together with uninsured motorist coverage (UM/UIM), is designed to cover the difference between the at-fault driver’s maximum pay-out and the actual cost of repairs or medical bills incurred by the other driver. If an underinsured driver’s liability insurance only pays a maximum of $20,000 US Dollars (USD) and the total damage to the other driver’s car is $30,000 USD, for example, the victim’s underinsured motorist cove
The law requires the owner of every automobile registered in the State of New Jersey to purchase an automobile insurance policy with minimum liability limits of $15,000 per person/$30,000 per accident. If you are injured in an accident with a person who is legally insured with a minimum policy, the largest amount of monetary damages that you can obtain from the other person for your injuries is $15,000. The law permits you to insure yourself for a greater amount of money if you are injured in an accident that is caused by a person who is legally insured with a small policy limit. You can purchase underinsured motorist coverage from your own insurance company that will allow you to recover monetary damages for your own injuries up to the policy limit that you select. Your insurance company is required to offer you underinsured motorist coverage with limits up to $250,000 per person/$500,000 per accident or $500,000 single limit (but not to exceed your liability limits). If you are injur
” This is coverage on your automobile insurance policy that automatically raises the dollar limits of coverage on the driver at fault, to fully compensate you for your injuries and damages. California law requires that a motorist carry a mere $15,000 of coverage for any one person injured, and only $30,000 of coverage no matter how many people are injured. If you carry higher limits of UNDERINSURANCE MOTORIST coverage, your coverage “kicks in” after the other driver’s coverage is depleted. A knowledgeable personal injury attorney allows you to engage in the “tug-a-war” with your own Insurance Company-to assure proper payment to you. “Will my insurance company claim my driving contributed to the collision? Is there a Statute of Limitations?” While you are thinking about hiring an attorney, your Insurance Company is already obtaining statements, taking photographs, pulling your past medical records-all to reduce what your Insurance Company is going to have to pay you. A knowledgeable per
