The car owner that has bought automobile insurance should not assume that the purchased policy has the ability to cover every sort of on-road incident. The policy’s terms specify the limits on its coverage.
Protections provided by uninsured/underinsured option
Most policies offer some level of protection without this special option. Still, that coverage would be limited. A policyholder that has secured the uninsured/underinsured option enjoys access to additional coverage.
That same policyholder would need to submit a 1st party claim, if he or she were hoping to obtain an amount of money that exceeded what would have been available, if there had been no option. Yet that action would not entitle the policyholder to an unlimited amount of money. The option-added policy’s terms would have to offer a level of protection that exceeded the policy limits for the underinsured motorist. In addition, the policyholder’s desire to be covered might not get realized, if the option’s terms were lower than those in the same policyholder’s liability insurance.
What is liability insurance?
That gives the insured driver protection from great financial losses. It promises to cover the insured driver in any instance where he or she has been found at-fault for a given accident. In addition, it guarantees the same driver’s access to legal support, in the form of a personal injury lawyer in Waukegan, and is one that has been hired by the insurance company.
Liability insurance does not cover any of the policyholder’s medical costs. By the same token, it does not reimburse the protected driver for any damage to the at-fault driver’s vehicle. It only offers reimbursement for the cost of damage to the other driver’s vehicle.
Any document that has laid out the terms for the liability insurance that a car-owner has obtained includes mention of the policy’s limits. Those limits spell out the maximum amount of money that can be paid to any claimant, regardless of the size of the same claimant’s losses.
Typically, the liability policy issued by any automobile insurance company has come with a standard rule, one that would apply after an accident. That rule states that no accident victim has the right to submit a claim for an amount of money that exceeds the limits on the at-fault party’s policy.
The post-accident rule in every state
The involved drivers must exchange their insurance information. If any driver were to refuse to provide such information, then the other motorist would need to write down the license number on the vehicle that had been driven by that same uncooperative individual. If one of the involved drivers had fled from the scene, and was not located, then the other driver could consider making use of his or her uninsured/underinsured option.