When you get motor vehicle insurance, you have to think about the type of coverage you want. Some people opt to only get the mandatory minimum coverage. This is often a decision that is based on the need to save money. What some people don't realize is that this decision might actually work against them later.
One form of coverage, underinsured motorist coverage, is one of the coverage types that is often misunderstood and might be passed over because of that. This insurance can prove very useful if you are ever involved in a car crash.
What does underinsured motorist insurance coverage do?
Underinsured motorist coverage gives you another layer of protection if you are hit by a driver who only has the bare minimum insurance. This could help you to recover the damages you suffer because of the crash if those damages are higher than the policy maximum that other driver carries. Your underinsured motorist insurance would kick in to help you get the compensation that you need to deal with the effects of the crash.
What happens if I don't get underinsured motorist insurance?
While we can't tell you that you have to purchase underinsured motorist insurance, we can tell you what can happen without it. If your damages are higher than the driver's policy limit and you didn't take out underinsured motorist insurance, your only chance of getting the full amount of your damages covered would be a personal injury lawsuit. If the driver doesn't have the assets or resources to pay, even a judgment in your favor likely wouldn't result in you getting compensation.
Source: FindLaw, "Do I Need Underinsured Motorist Coverage?," accessed June 08, 2017