How Underinsured Coverage Can Save You

The Necessity of Underinsured Coverage

As the Law Office of Carlson Bier Associates, we take pride in representing the best interests of our clients. With vast experience in handling personal injury cases, we understand the importance of underinsured coverage benefits. With a rapid rise in the number of cars on the road in Illinois, the risk of being in an accident has also increased. While insurance is mandatory, one cannot always be certain if the other driver involved has adequate insurance coverage. This is where underinsired coverage comes into play.

Understanding Underinsured Coverage

Underinsured coverage is a component of your auto insurance policy that takes effect when the other driver’s liability limits are not sufficient to cover the damages or medical expenses you have incurred. Such a situation often calls for dire financial assistance—the underinsured coverage steps in, saving you from unexpected financial burdens.

Why Underinsured Coverage Is Crucial

Underinsured motorist coverage often comes as a lifesaver in the event of an accident where the at-fault driver’s coverage falls short of compensating for the resultant damages. Here are the pivotal reasons elaborating why it’s essential:

Financial Protection

The primary benefit of underinsured coverage is financial protection. If the other driver’s liability coverage can’t cover your medical bills or repair costs, your underinsured motorist coverage will step in.

Legal Shield

According to Illinois courts’ law, it is illegal to drive without a minimum level of auto insurance. However, not everyone adheres to this requirement. Having underinsured motorist coverage shows legally permissible diligence and adds a layer of security.

Peace of Mind

Knowing that you’re covered in case of an accident provides peace of mind. It diminishes the anxiety associated with potential financial burdens that could result from someone else’s negligence.

How Underinsured Coverage Works

The procedural functioning of underinsured coverage is quite straightforward, but it has immense significance. If you get into an accident caused by another driver who is underinsured, you will first claim their policy limit. Once that’s exhausted and if you still have outstanding expenses, you’ll claim from your underinsured coverage.

It is important to note that the claim amount from both policies combined can’t exceed your underinsured motorist policy limit.

Limitations of Underinsured Coverage

While underinsured protection offers significant benefits, it does come with limitations. It doesn’t cover any property damage or replace any physical assets; it only covers personal injuries. Moreover, your underinsured coverage limit cannot be higher than your standard liability coverage limit.

Conclusion: Secure Your Financial Future with Underinsured Coverage

When it comes to financial protection following an automobile accident, more coverage is always better than less. The law has made some provisions, such as mandatory liability insurance, but those have their limitations. Underinsured motorist coverage fills this gap, providing an extra layer of protection that could save you thousands of dollars should a regrettable accident occur.

As the Law Office of Carlson Bier Associates, we have seen firsthand the immense relief that adequate underinsured coverage can bring clients dealing with the aftermath of an accident. Therefore, we highly recommend taking time to review your auto insurance policy and ensure you’re appropriately protected. Underinsured coverage benefits not only provide financial security but also peace of mind, knowing you’re well-covered for the unexpected.