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How does underinsured or uninsured motorist coverage work?

| May 21, 2021 | Car Accidents, UM/UIM Coverage |

Auto liability insurance protects both the injured and negligent parties. The insurance provider may pay a substantial claim to someone hurt in a Minnesota vehicle collision. Since the settlement comes from the insurance company, the liable party might not suffer personal losses. However, the negligent person might not carry enough insurance to cover all of the victim’s losses. If the victim has underinsured or uninsured motorist coverage, seeking a settlement under these coverage provisions may work.

Underinsured and uninsured coverage explained

Under Minnesota law, a driver must carry a minimum amount of liability coverage to deal with bodily injury or property damage. The amounts are quite low; even someone with $100,000 in liability coverage might not have enough insurance to pay for the losses. In such cases, a victim who carries underinsured motorist coverage could file a claim for an amount above the negligent driver’s policy.

Uninsured motorist coverage comes into play when the driver has no insurance at all. Even though the law mandates insurance coverage, not all drivers have it.

Potential legal action to take

Those without sufficient uninsured or underinsured motorist coverage may file a lawsuit against the liable party. Unfortunately, drivers with little or no insurance might not have enough assets to make a case worthwhile. Perhaps it is advisable to procure a decent amount of uninsured and underinsured motorist coverage long before an accident happens.

Even with the appropriate coverage, the insurance company might prove difficult. The provider may negotiate in bad faith or try to “lowball” a settlement. In such situations, suing the insurance company may become necessary.

A personal injury attorney may assist accident victims, whether they’re drivers, passengers or pedestrians, in filing an insurance claim. The attorney might help with any legal action if a lawsuit becomes necessary to recover losses.

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