If you have been injured in a car accident that was someone else’s fault, the negligent driver’s insurance company should pay for your medical bills, wage loss and other damages. But what happens if that driver was doubly careless and did not have liability insurance coverage? This is where uninsured motorist (UM) coverage will play an important role in your financial recovery.
Compensation comes from your own insurance policy
No matter how responsible you are with your own insurance coverage, you can’t count on every other driver on the road to take the same precautions. Uninsured motorist coverage comes from your own policy and is, in fact, required in South Dakota. You set the limits and pay the premium. When a careless driver injures you or someone in your vehicle and that driver does not have coverage, you draw upon the benefits from your UM coverage to provide compensation for the damages suffered.
What about underinsured motorist coverage?
Underinsured motorist (UIM) coverage comes into play when the at-fault driver has liability coverage but it is not enough to pay for the damages arising from the accident. For example, let’s say your total losses from the accident are $200,000 but the driver only has $150,000 in coverage. Your UIM coverage would pay the missing $50,000.
Different policy, same legal struggle
UM and UIM coverage come from your own insurance policy, but that doesn’t mean you will necessarily have an easy road in recovering all of the compensation you deserve. You can expect your insurance company to look out for its own interests and limit your compensation to the greatest possible extent. With an experienced legal ally in your corner, however, you can have the best possible chance at maximizing your financial recovery.