Uninsured and underinsured motorist coverage. What is it? So, basically uninsured is just what it sounds like. It means that you get into a car accident and the other driver has no insurance. So, if you didn’t have uninsured coverage, you’d be screwed because there would be no one to pay for your injuries. If you carry uninsured coverage and they have no insurance, your insurance company is going to cover you. They’re going to step into the shoes of the defendant. the at fault driver and pay you for your injuries.
Even better is the underinsured. That means that the defendant has insurance. Let’s say the Rhode Island State minimum 25,000, but you’re seriously injured. You have a half a million dollar claim. If all you can get from them is 25,000 because suing them personally won’t have any value. Let’s say they barely have a job, they make no money, they have no assets, going after them is a waste. If you have underinsured, it means you take their $25,000 policy limit and your underinsured coverage sits on top of that, which means now you can take their policy and go after yours. So, if you have a million dollar policy in a $500,000 case, you’re going to get $25,000 from them and 475,000 from your insurance company. Underinsured insurance is very, very inexpensive.
Everyone should have uninsured and underinsured coverage because it’s for your protection.
