Most people are familiar with the liability coverage of their motor vehicle insurance policy. Liability coverage protects other motorists who suffer damages in an accident that you cause. BE AWARE that not all policies contain liability coverage and if they do, that coverage can vary greatly. For instance, you could be hit by someone who has what is called a basic policy which has only $15,000 in liability coverage.
Bottom Line, you cannot rely on other motorists to have enough coverage to adequately compensate you for your damages in the event you are in a motor vehicle accident.
There are provisions in your motor vehicle policy that protect you in the event you are hit by someone with little or no liability coverage. These provisions are called uninsured (UM) and underinsured (UIM) motorist coverage. If the person who causes the accident does not have liability coverage or has insufficient liability coverage to adequately compensate your for your damages, you may make a claim against your own policy to make up the difference. So in the example of the driver with the $15,000 liability policy, if you have UIM coverage over $15,000, you can make a claim with your own insurance company.
If you have any questions regarding UM/UIM coverage or any other aspect of your motor vehicle insurance policy, the lawyers at Levinson Axelrod will be happy to provide a free review of your policy.