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Uninsured and Underinsured Motorist Coverage: What They Are and Why They Are So Important!

| Oct 9, 2010 | Uncategorized

It seems like almost every week that I have to call a client and tell them that the at-fault driver who hit them in a car accident is uninsured. Sometimes, my client carries uninsured motorist and we can simply go through their own insurance. Sometimes, however, my client does not carry uninsured motorist and the client, who was not at fault for the accident, is stuck with body damage to their vehicle, mounting medical bills, and lost wages. Your personal injury attorney could sue the at fault driver directly, but people who are reckless enough to drive their car without insurance are not likely to have any assets and are not worth suing in Court. You will be left without a car and without any personal injury settlement. It happens much more than you think and you should seriously consider spending the extra few hundred dollars a year to protect yourself with uninsured motorist.

In Rhode Island, it is the law that every registered vehicle carry an auto insurance policy equal to $25,000 per person injured. Rhode Island, however, does NOT verify the insurance information given. Therefore, when a car is registered the person can write down any insurance company that comes to mind and the clerk at the DMV will likely not even ask for proof. If proof is asked for, the person only needs to pay the first month installment, obtain a proof of insurance card, and then stop making payments for the rest of the year. No one is the wiser! Until an accident occurs.

In Massachusetts, insurance companies by law are required to notify the registry of motor vehicles when an insurance policy has lapsed so that the uninsured person loses their license and is forced off the road. Massachusetts’ laws have teeth!

If you carry the appropriate uninsured motorist you will be able to have your car repaired and collect for all the personal injury damages to which you are entitled: past and future medical bills, lost wages, and pain and suffering.

Underinsured Motorist Coverage

An equally important reason to carry uninsured motorist coverage is because it will act as “under”insured coverage if you are seriously injured in an auto accident and the person who caused the accident only carries the state minimum of $25,000 in liability coverage. If your personal injury claim is worth $100,000 and the at fault driver only carries the State minimum, then you are losing $75,000. However, if you carry uninsured motorist of $50,000 then you would be able to collect that as well. Now if you have a $100,000 personal injury claim you can collect the $25,000 available from the at fault driver and the $50,000 from your own insurance company. Therefore, you end up with $75,000 instead of $25,000. Even though it is not the full value of your injury claim it is much better to suffer a $25,000 loss than a $75,000 loss.

Underinsured motorist coverage can become very complicated and you need to hire an experienced personal injury attorney. For one, the injury is very serious and you need an attorney who understands the value of a serious injury. Second, there are certain things you must do before accepting the policy limits from the other driver and going after your own underinsured coverage. If you do not handle this appropriately, you may lose out on tens of thousands of dollars. That is why it is imperative that you speak with an experienced Rhode Island car accident attorney.

Attorney Joseph Lamy is a car accident specialist with tremendous experience in settling auto accident injury claims and dealing with the ins and outs of the insurance company. If you have been seriously injured in a car accident, contact my office for a free consultation right away!

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