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Underinsured Motorist Coverage Explained

Underinsured motorist coverage is additional insurance coverage designed to provide an extra layer of protection to you in the event the person who caused your accident does not have sufficient insurance to compensate you for your injuries.

Here is an example. A young woman—we’ll call her Rita—is rear-ended while stopped at a stop light. Rita suffers a neck injury that requires surgery.

The accident clearly is not Rita’s fault. Rita was rear-ended while stopped at a stop light. But the driver of the car that rear-ended her only carries the minimum insurance policy required in Alaska: $50,000.

That amount of money is clearly not enough to compensate Rita for her injuries, particularly since Rita needed surgery. Further investigation reveals that Rita has supplemental underinsured motorist coverage of $100,000. That meant that this extra insurance policy, also known as UIM, would kick in and provide the difference; that is, since there wasn’t enough insurance to properly compensate this young woman, the supplemental insurance policy (UIM) kicked in to then supplement the available insurance up to a maximum of $100,000.

Because underinsured motorist coverage can be very important if you are in a serious car accident, I strongly recommend that you find your automobile insurance policy and check to see if you have underinsured motorist coverage and how much it is. If it is minimal, you should strongly consider increasing the amount as soon as possible.

If you have been in a car accident, and you are concerned the other driver’s insurance policy will not fully compensate you for your injuries, you should contact an Anchorage personal injury attorney. Contact the Law Office of Ben Crittenden for a free consultation. You can also visit our personal injury page for more information.